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5 Pages

Murphy farms-in to Athabasca Oil's Duvernay and Montney assets for CAD$475 million


Murphy farms-in to Athabasca Oil's Duvernay and Montney assets for CAD$475 million

Report summary

On 27 January 2016, Athabasca Oil announced the finalisation of a joint venture agreement with Murphy Oil to develop Athabasca's Duvernay and Montney assets for consideration of Cdn$475 million net (US$334 million). The deal is structured Cdn$250 million in cash, alongside a Cdn$225 capital carry. Wood Mackenzie has a bespoke model for Athabasca's Duvernay position which is the genesis of the valuation. We do not include AOC's Montney assets in our valuation analysis. Athabasca is selling a 70% working interest in production, acreage and infrastructure within their Greater Kaybob asset (200,000 acres), and a 30% working interest in their Greater Placid assets (60,000 acres). Murphy will assume operatorship of the Kaybob (Duvernay) assets while Athabasca will remain in place as operator of the Greater Placid (Montney) assets and midstream infrastructure.

What's included?

This report includes 1 file(s)

  • Murphy farms-in to Athabasca Oil's Duvernay and Montney assets for CAD$475 million PDF - 302.66 KB 5 Pages, 6 Tables, 1 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
    • Duvernay - Kaybob
    • Montney - Placid
  • Deal analysis
  • Strategic rationale
    • Murphy
    • Athabasca
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Gross Duvernay cash flow and production forecast
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • 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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