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Neptune Energy buys ENGIE's upstream assets for US$2.6 billion

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Report summary

Private equity backed Neptune Energy is buying ENGIE's E&P business as the French utility exits the upstream. Neptune will pay US$2.6 billion for a 70% interest in Exploration & Production International ("EPI"). The remaining 30% of EPI is held by China Investment Corporation which acquired its stake from GDF Suez in 2011 for US$3.2 billion. Upon completion of the ENGIE deal Neptune will become the sole (100%) owner of EPI implying a change in the nature of CIC's investment. EPI's commercial reserves base covers a large number of mostly gas assets. Europe accounts for three quarters of our commercial reserves figure. The portfolio is expected to decline from 2018 but is highly cash generative for many years. Neptune intends to build a diverse international E&P business of scale and EPI offers an ideal starting point. It is not a surprise to see ENGIE exit the upstream. European utilities are focusing on a low carbon future and others have already left the sector. ENGIE has ...

What's included

This report contains

  • Document

    Neptune Energy buys ENGIE's upstream assets for US$2.6 billion

    PDF 347.49 KB

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 11 images and tables including:

Images

  • EPI (70%) WM commercial reserves (mmboe): by country; by asset (top 10 only)
  • EPI production by country (70% net)
  • EPI (70%) WM commercial valuation (standalone): by country; by asset (top 10 only)
  • EPI (70%) cash flow forecast

Tables

  • Executive summary: Table 1
  • 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
  • Upstream assets: Table 1

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