Deal Insight
Shell exits Appalachia to National Fuel Gas for US$541 million
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Shell has agreed to sell its Appalachia shale gas position to National Fuel Gas company for US$541 million. The transaction is intended to be paid fully in cash, but National Fuel can elect to pay up to US$150 million using NFG stock. The transaction includes ~450,000 net leasehold acres across Pennsylvania, with ~350 producing Marcellus and Utica wells in Tioga County and associated facilities. Current net production is ~250 million standard cubic feet per day.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes the following images and tables:
- Executive summary: Table 1
- Acquired acreage and infrastructure shown next to NFG existing acreage and infrastructure
- Upstream assets: Table 1
- PDP and PUD asset valuation at 10%, 15% and 20% discount rates
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Shell's activity as an operator in the Northeast never recovered to pre-2014 levels
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
What's included
This report contains:
