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8 Pages

PDC Energy enters the Permian with US$1.5 billion Southern Delaware acquisition


PDC Energy enters the Permian with US$1.5 billion Southern Delaware acquisition

Report summary

PDC Energy will enter the Permian's Delaware Basin with a purchase of 57,000 net acres for US$1.5 billion. The acreage, located in Reeves and Culberson counties in west Texas, has a current net production of approximately 7,000 boe/d from 21 horizontal wells. PDC will operate 100% of the areage, with an average working interest of 93%. The sellers are Arris Petroleum Corporation and 299 Resources LLC, both backed by Kimmeridge Energy Management Company. Our valuation supports the deal price paid by PDC. We model breakevens as low as US$44/bbl in the Central area based on recent offset well performance.

What's included?

This report includes 1 file(s)

  • PDC Energy enters the Permian with US$1.5 billion Southern Delaware acquisition PDF - 4.51 MB 8 Pages, 9 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
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Offset operators near Arris Petroleum wells
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
    • Deal analysis: Table 4
    • Deal analysis: Table 5
  • Upsides and risks
  • Strategic rationale
    • Permian operators ranked by locations and Permian M&A spend (2015-2016)
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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