Deal Insight

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

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28 August 2015

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.

Table of contents

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

Tables and charts

This report includes 8 images and tables including:

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

What's included

This report contains:

  • Document

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

    PDF 3.66 MB