Deal insight
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7 Pages

Encana sells its Haynesville natural gas assets to GEP Haynesville for US$850 million

Encana sells its Haynesville natural gas assets to GEP Haynesville for US$850 million

Report summary

We value the acquired assets at US$1.27 billion. Against a consideration of US$850 million, this implies a long-term Henry Hub gas price of US$3.53/mcf. GeoSouthern is paying US$7,589 per acre (unadjusted), or US$4,167 per flowing mcf based on Q2 average production. This is less than Vine/Blackstone paid for Shell's assets on core Haynesville acreage last August. This reflects increased market uncertainty and a reduction in buyer appetite amidst falling commodity prices.

What's included?

This report includes 1 file(s)

  • Encana sells its Haynesville natural gas assets to GEP Haynesville for US$850 million PDF - 3.66 MB 7 Pages, 7 Tables, 1 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Encana and Vine O&G wells in the Haynesville
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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