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8 Pages

Progress Energy and PETRONAS create strategic partnership in the Montney Shale


Progress Energy and PETRONAS create strategic partnership in the Montney Shale

Report summary

Progress Energy has announced a strategic partnership with PETRONAS to develop three of its Montney Shale assets in northeast British Columbia. PETRONAS will acquire a 50% interest in Progress' Altares, Lily and Katha properties for Cdn$1.1 billion (US$1.1 billion), made up of an initial cash payment and a subsequent cost carry. In addition, the two companies will form a JV to assess the feasibility of an LNG export terminal on the west coast of British Columbia, joining a growing ...

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  • Progress Energy and PETRONAS create strategic partnership in the Montney Shale PDF - 709.08 KB 8 Pages, 3 Tables, 3 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
    • Attractive returns achievable, but heavily dependent on recovery factors
    • Discount rate remains a key variable
    • Metrics stack up well with recent transactions
    • Canadian M&A - the Asian influx
  • Upsides and risks
  • Strategic rationale
    • PETRONAS
    • Progress Energy
  • Oil & gas pricing and assumptions

In this report there are 6 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Acquired acreage, relative to recent Montney deals
  • Deal analysis
    • Valuation sensitivity to reserve modelling scenarios and discount rate
    • Deal analysis: Table 1
  • Upsides and risks
    • Wood Mackenzie forecast - Japan spot price vs. Henry Hub
  • 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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