KKR-backed Venado buys Eagle Ford assets from SM Energy for US$800 million
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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 contains
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes 10 images and tables including:
Images
- SM Energy and Anadarko Eagle Ford wells and gathering system
Tables
- Executive summary: Table 1
- Upstream assets: Table 1
- Upstream assets: Table 2
- Upstream assets: Table 3
- 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
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