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8 Pages

Mitsui to pay US$1.4 billion for a stake in Anadarko's Marcellus acreage


Mitsui to pay US$1.4 billion for a stake in Anadarko's Marcellus acreage

Report summary

In the latest of a string of recent deals in the US shale gas sector, Mitsui has announced the acquisition of a 32.5% stake in Anadarko's Marcellus acreage. The consideration is US$1.4 billion, to be paid as a carry of Anadarko's drilling and completion costs over the next four or five years. Our base case valuation of the acquired interests (excluding the cost carry) is US$1.5 billion. This equates to an Implied Long-term Oil Price of US$60/bbl, or an implied long-term gas price ...

What's included?

This report includes 1 file(s)

  • Mitsui to pay US$1.4 billion for a stake in Anadarko's Marcellus acreage PDF - 735.01 KB 8 Pages, 7 Tables, 2 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
    • Valuation Methodology
  • Upsides and risks
    • Technological upside could further reduce breakeven costs
    • Fiscal uncertainty and infrastructure bottlenecks represent tangible risks
  • Strategic rationale
    • Mitsui & Co.
    • Anadarko
  • Oil & gas pricing and assumptions

In this report there are 9 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Anadarko Marcellus Acreage
    • Upstream assets: Table 1
    • Wood Mackenzie modelling forecasts and assumptions for the interests acquired by Mitsui
  • 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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