Deal Insight
LINN acquires BP's Hugoton Basin assets for US$1.2 billion
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Report summary
LINN Energy is to acquire BP's Hugoton Basin assets in southwest Kansas for US$1.2 billion. The upstream portfolio holds proved reserves of 730 bcfe, of which 81% are proved developed. Current production is 110 mmcfed - two thirds gas, one third liquids. The portfolio also includes 100% ownership of BP's Jayhawk plant - a 450 mmcfd cryogenic gas processing facility. At a 10% discount rate, deal economics do not look particularly compelling. We value the upstream assets and the ...
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Modelling assumptions
- Midstream assets
-
Deal analysis
- Discount rate sensitivity
- Hedging
- Jayhawk plant valuation
-
Strategic rationale
- LINN Energy
- BP
- Oil & gas pricing and assumptions
Tables and charts
This report includes 11 images and tables including:
- Executive summary: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Wood Mackenzie upstream modelling assumptions
- BP Hugoton assets
- Upstream assets: Table 1
- Implied long-term gas price sensitivity to discount rate and long-term Brent assumption
- LINN acquisitions from 2009 - seller highlighted
- Strategic rationale: Table 1
What's included
This report contains:
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