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7 Pages

KKR-backed Venado buys Eagle Ford assets from SM Energy for US$800 million


KKR-backed Venado buys Eagle Ford assets from SM Energy for US$800 million

Report summary

On 3 January, SM Energy announced the sale of its non-operated Eagle Ford position to KKR-backed Venado Oil and Gas, LLC for US$800 million. The deal includes 37,500 net acres in the western Eagle Ford producing 27,270 net boe/d, and a 12.5% interest in the Springfield Gathering System. It is the first large acquisition by the partnership between KKR and Venado, which aims to build scale and a long-term business in the play. This is an opportunistic acquisition for Venado. We estimate that the price attributable to the upstream assets was 20% below our commercial valuation. Future development depends on the operator, Anadarko. Anadarko currently employs <1% of its US onshore capex in the play. However, it is rumoured that Anadarko is marketing its position, thus potential upside exists if a new operator comes in with a renewed focus on the play.

What's included?

This report includes 1 file(s)

  • KKR-backed Venado buys Eagle Ford assets from SM Energy for US$800 million PDF - 1.49 MB 7 Pages, 9 Tables, 1 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
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 10 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • SM Energy and Anadarko Eagle Ford wells and gathering system
    • Upstream assets: Table 1
    • Upstream assets: Table 2
    • Upstream assets: Table 3
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • 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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