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