Deal insight
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7 Pages

Noble sells northeast gas assets for up to US$1.225 billion


Noble sells northeast gas assets for up to US$1.225 billion

Report summary

Noble Energy is selling its upstream assets in West Virginia and Pennsylvania to an undisclosed buyer for US$1.225 billion. This includes US$100 million contingent upon annual Dominion South prices averaging above US$3.30 per million BTU from 2018 through 2020. The assets currently target the Marcellus Shale. Noble's acreage lies primarily in the Rich Gas Core and West Virginia Wet and Dry sub-plays in southwestern Pennsylvania and northern West Virginia. In October 2016, Noble dissolved its 50-50 Marcellus joint venture with CONSOL, and we suggested at the time that Noble may sell down or sell out. Our valuation assumes 120-acre spacing in the Rich Gas Core and West Virginia Dry sub plays and 140-acre spacing in West Virginia Rich. In total, we model roughly 1,000 remaining net locations. We see this deal at positive for both Noble and the undisclosed buyer.

What's included?

This report includes 1 file(s)

  • Noble sells northeast gas assets for up to US$1.225 billion PDF - 2.44 MB 7 Pages, 7 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
  • Deal analysis
  • Upsides and risks
    • Upsides
    • Downsides
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Noble's Marcellus position
    • Upstream assets: Table 1
  • 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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