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6 Pages

Husky acquires western Canadian properties from ExxonMobil for Cdn$860 million


Husky acquires western Canadian properties from ExxonMobil for Cdn$860 million

Report summary

Husky Energy is to acquire a package of assets in Alberta and northeast British Columbia from ExxonMobil for Cdn$860 million (US$837 million). The assets will provide 21,900 boe/d of gas-weighted production. Our base case valuation of the acquired properties is US$911 million. This equates to an implied long-term gas price of US$6.25/mcfe. In reality, Husky has probably factored in a lower breakeven gas price on the assumption that it can improve deal economics by increasing ultimate ...

What's included?

This report includes 1 file(s)

  • Husky acquires western Canadian properties from ExxonMobil for Cdn$860 million PDF - 332.60 KB 6 Pages, 6 Tables, 0 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
    • Upsides
      • Recent fiscal changes could be favourable
    • Risks
      • Uncertainty remains in the North American gas market
      • Cost control remains key
  • Strategic rationale
    • Husky Energy
    • ExxonMobil
  • Oil & gas pricing and assumptions

In this report there are 6 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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