Deal Insight
JX Nippon sells UK portfolio to NEO Energy for US$1.7 bn
Report summary
JX Nippon has sold its UK upstream business to HitecVision-backed NEO Energy for US$1.655 billion. Our valuation is above this price. This valuation discount is broadly in line with UK deal pricing this year, which has been relatively weak. Almost all our valuation is associated with the producing Culzean and Mariner fields. Despite the discount to our valuation, this is a fair exit price for JX Nippon. There are few companies in the UK who have the appetite - or firepower - to acquire a portfolio of this size. In NEO, it has found a credible buyer that has demonstrated the ability to transact and follow through on deals of scale.
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Culzean (non-op, 18.01%)
- Mariner (non-op, 20%)
- Brae Complex (non-op, 4.0% - 6.3%)
- Deal analysis
-
Upsides and risks
- Upsides
- Risks
-
Strategic rationale
- NEO Energy
- JX Nippon
- Oil & gas pricing and assumptions
Tables and charts
This report includes 7 images and tables including:
- Executive summary: Table 1
- 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
- Upstream assets: Table 1
What's included
This report contains:
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