Deal Insight

Reliance to pay US$1.7 billion for a stake in Atlas Energy's Marcellus acreage

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

15 April 2010

Reliance to pay US$1.7 billion for a stake in Atlas Energy's Marcellus acreage

Report summary

Continuing the trend of international companies buying into US shale gas assets, India-based Reliance has announced the acquisition of a 40% stake in Atlas' Marcellus acreage. The consideration is US$1.7 billion, US$340 million to be paid as cash at closing and the balance as a carry of Atlas' drilling costs over the next five to seven years. Our base case valuation of the acquired interests (excluding the cost carry) is US$1.45 billion. This equates to an Implied Long-term Oil ...

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
    • Valuation Methodology
    • Development of the substantial resource outside the AMI lowers the deal implied gas price
    • Technology improvements could further reduce costs and enhance development returns
    • Improved water management could reduce unit production costs
    • Severance tax in Pennsylvania a prevailing downside risk
    • Continued downward pressure on gas prices
    • Reliance
    • Atlas Energy
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

  • Executive summary: Table 1
  • Atlas Marcellus acreage
  • Upstream assets: 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

What's included

This report contains:

  • Document

    Reliance to pay US$1.7 billion for a stake in Atlas Energy's Marcellus acreage

    PDF 963.65 KB

Other reports you may be interested in

Browse reports by Industry Sector