Deal Insight
EOG Resources buys Yates Petroleum for US$2.5 billion
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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
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.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
-
Strategic rationale
- EOG Resources
- Yates Petroleum
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Executive summary: Table 1
- Upstream assets: Table 1
- WM sub-play valuations
- Upstream assets: Table 2
- Benchmarking: per-acre consideration values for comparable 2016 Permian deals
- 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
- WM pro-forma liquids production forecast versus EOG's previous growth targets*
What's included
This report contains:
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