Deal insight

Encana strikes new partnership with Mitsubishi on undeveloped Montney land

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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, ...

What's included

This report contains

  • Document

    Encana strikes new partnership with Mitsubishi on undeveloped Montney land

    PDF 896.41 KB

Table of contents

  • Executive summary
  • Transaction details
    • Cutbank Ridge - Encana's Montney heartland
    • The Cadomin and Doig alternative
    • Five-year development plan
    • Massive resource potential
    • An attractive deal, provided the upside potential can be realised
    • Compares well to previous Montney deals
    • Sensitive to liquids content
      • LNG export economics prove very attractive
    • Upsides
    • Risks
    • Encana
    • Mitsubishi
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

Images

  • Outline of the Cutbank Ridge Partnership lands
  • Wood Mackenzie base case valuation sensitivity to liquids content

Tables

  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Upstream assets: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3

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