Deal Insight
Encana strikes new partnership with Mitsubishi on undeveloped Montney land
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In one of the largest Montney transactions to date, Mitsubishi has acquired a 40% stake in 409,000 net acres of Encana's northeast British Columbia lands for Cdn$2.9 billion. Mitsubishi will pay Cdn$1.45 billion up front and invest the same amount again over the coming five years. Adding to its position in the Cordova Embayment, the deal cements Mitsubishi as a serious player in the Canadian unconventional gas space and adds further weight to its LNG export ambitions. For Encana, ...
Table of contents
- Executive summary
- Transaction details
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Upstream assets
- Cutbank Ridge - Encana's Montney heartland
- The Cadomin and Doig alternative
- Five-year development plan
- Massive resource potential
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Deal analysis
- An attractive deal, provided the upside potential can be realised
- Compares well to previous Montney deals
- Sensitive to liquids content
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The LNG option
- LNG export economics prove very attractive
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Upsides and risks
- Upsides
- Risks
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Strategic rationale
- Encana
- Mitsubishi
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Outline of the Cutbank Ridge Partnership lands
- Deal analysis: Table 1
- Wood Mackenzie base case valuation sensitivity to liquids content
- Deal analysis: Table 2
- Deal analysis: Table 3
What's included
This report contains:
