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, ...
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Cutbank Ridge - Encana's Montney heartland
- The Cadomin and Doig alternative
- Five-year development plan
- Massive resource potential
-
Deal analysis
- An attractive deal, provided the upside potential can be realised
- Compares well to previous Montney deals
- Sensitive to liquids content
-
The LNG option
- LNG export economics prove very attractive
-
Upsides and risks
- Upsides
- Risks
-
Strategic rationale
- Encana
- Mitsubishi
- Oil & gas pricing and assumptions
Tables and charts
This report includes 8 images and tables including:
- 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:
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