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6 Pages

Sinopec acquires a 50% stake in Chesapeake's Mississippi Lime assets for US$1 bn


Sinopec acquires a 50% stake in Chesapeake's Mississippi Lime assets for US$1 bn

Report summary

This is a good deal for Sinopec. The company gains a 50% share in 34 mboe/d of production at a cost US$60,000 'per flowing barrel' (below market average), plus 425,000 net acres of undeveloped land at effectively zero cost. Sinopec is already familiar with the play through its JV with Devon, and may now be in a position to transfer knowledge between its two operating partners. Furthermore, this is a 100% cash deal, and features no cost-carry period.We value the deal at US$1.35 ...

What's included?

This report includes 1 file(s)

  • Sinopec acquires a 50% stake in Chesapeake's Mississippi Lime assets for US$1 bn PDF - 334.96 KB 6 Pages, 7 Tables, 0 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
    • Modelling assumptions
  • Upsides and risks
    • Upsides
    • Risks
  • Strategic rationale
    • Sinopec
    • Chesapeake
  • Oil & gas pricing and assumptions

In this report there are 7 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
  • 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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