Deal Insight
Shell exits Appalachia to National Fuel Gas for US$541 million
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 10 images and tables including:
- 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:
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