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Reliance to pay US$1.3 billion for a stake in Pioneer's Eagle Ford acreage

Reliance to pay US$1.3 billion for a stake in Pioneer's Eagle Ford acreage

Report summary

Reliance has announced the acquisition of a 45% stake in Pioneer Natural Resources' Eagle Ford Shale acreage. The consideration is US$1,315 million: US$263 million to be paid as cash at closing with the balance to be paid as 75% of Pioneer's drilling costs through 2012. Our base case valuation of the acquired interests (excluding cost carry) is US$1 billion. This equates to an Implied Long-term Oil Price of US$80/bbl, or an implied long-term Henry Hub gas price of US$6.75/mcf ...

What's included?

This report includes 1 file(s)

  • Reliance to pay US$1.3 billion for a stake in Pioneer's Eagle Ford acreage PDF - 382.42 KB 7 Pages, 8 Tables, 1 Figures


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
    • Eagle Ford Shale
  • Deal analysis
  • Upsides and risks
    • Liquids production
    • Gathering and processing infrastructure
    • Service costs
    • Costs
  • Strategic rationale
    • Reliance
    • Pioneer
  • Oil & gas pricing and assumptions

In this report there are 9 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
    • Implied long-term oil price sensitivities under different liquids stream modelling scenarios
    • Upsides and risks: Table 1
  • 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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