Deal insight

EOG Resources buys Yates Petroleum for US$2.5 billion

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Report summary

The US$2.5 billion deal consideration is below our base case valuation. And we believe our conservative base case assumptions (e.g. type well IP rates lower than EOG's latest results; no value attributed to 76% of the acreage) skews our valuation's risk profile to the upside. Deal metrics that exclude our modelling assumptions also suggest that the deal consideration was inexpensive: relative to comparable Permian deals in 2016 EOG paid 65% less on a dollar per acre basis for a Delaware position that is similar in quality and significantly higher in scalability.

What's included

This report contains

  • Document

    EOG Resources buys Yates Petroleum for US$2.5 billion

    PDF 412.57 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
    • EOG Resources
    • Yates Petroleum
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 11 images and tables including:

Images

  • WM sub-play valuations
  • Benchmarking: per-acre consideration values for comparable 2016 Permian deals
  • WM pro-forma liquids production forecast versus EOG's previous growth targets*

Tables

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Upstream assets: Table 2
  • 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

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