Deal Insight
KKR-backed Venado buys Eagle Ford assets from SM Energy for US$800 million
Get this report
$1,650
You can pay by card or invoice
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.>
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:
- Executive summary: Table 1
- SM Energy and Anadarko Eagle Ford wells and gathering system
- 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
What's included
This report contains:
Other reports you may be interested in
24 October 2018
Gulf Coast region overview
Country Report
Gulf Coast region overview
The Gulf Coast region overview summarises key trends, production, economics, and activity for the region and individual basins.
$6,75009 January 2017
New year, renewed positivity, as companies look to adapt and grow: Corporate week in brief
Insight
New year, renewed positivity, as companies look to adapt and grow: Corporate week in brief
New year, renewed positivity, with the sector making moves in exploration, M&A and discovered resource access.
$70015 January 2018
SM Energy sells Powder River Basin assets for US$500 million
Deal Insight
SM Energy sells Powder River Basin assets for US$500 million
SM Energy announced the sale of approximately 112,200 mainly contiguous net acres across the Powder River Basin to Northwoods Energy.
$1,650
