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7 Pages

Total to acquire a 25% stake in Chesapeake’s Barnett Shale portfolio for US$2.25 billion


Total to acquire a 25% stake in Chesapeake’s Barnett Shale portfolio for US$2.25 billion

Report summary

Total and Chesapeake have reached agreement to form a JV that will see Total acquire 25% of Chesapeake's interests in the Fort Worth Barnett Shale. The total consideration is US$2.25 billion, comprising US$800 million in cash at closing and US$1.45 billion in future drilling and completion cost-carries. Under our base case assumptions, Wood Mackenzie values the acquired portfolio at US$1.8 billion (NPV10). Against the US$2.25 billion consideration, this equates to an implied ...

What's included?

This report includes 1 file(s)

  • Total to acquire a 25% stake in Chesapeake’s Barnett Shale portfolio for US$2.25 billion PDF - 1.23 MB 7 Pages, 7 Tables, 2 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
  • Upsides and risks
  • Strategic rationale
    • Total
    • Chesapeake
  • 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
    • Chesapeake country interests, Fort Worth Basin, Texas
    • Upstream assets: Table 1
    • Wood Mackenzie modelling forecasts and assumptions for Chesapeake Barnett Shale portfolio (net 25%)
  • 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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