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11 Pages

L1 acquires RWE Dea for US$7.1 billion

L1 acquires RWE Dea for US$7.1 billion

Report summary

LetterOne AG, the investment vehicle founded with the proceeds of Alpha Group's exit from TNK-BP, has acquired RWE Dea for US$7.1 billion. We value the business at US$6.7 billion (NPV10, assuming a March 2014 effective date), of which Germany, the UK and Norway account for 80%. These countries provide dependable, high margin cash flow, plus a handful of mid-term development opportunities. North Africa is potentially the most important growth region in the portfolio, but operations are ...

What's included?

This report includes 1 file(s)

  • L1 acquires RWE Dea for US$7.1 billion PDF - 692.70 KB 11 Pages, 9 Tables, 2 Figures


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
    • Germany
    • Norway
    • UK
    • Libya
    • Egypt
    • Algeria
    • Denmark
    • Netherlands
  • Deal analysis
  • Upsides and risks
    • Upsides
      • North Alexandria (Egypt)
      • Exploration
    • Risks
      • Libya development
      • UK development
      • Norway development
      • Denmark/Netherlands decommissioning
      • Algeria development
  • Strategic rationale
    • LetterOne
    • RWE
    • Implications for the utilities market
  • Oil & gas pricing and assumptions

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
    • Upstream assets: Table 2
    • Wood Mackenzie forecast for RWE Dea production (including North Alexandria upside)
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
    • North Alexandria valuation sensitivities (NPV10)
  • Strategic rationale
    • Strategic rationale: Table 1
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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