Deal Insight
Woodside takes Wheatstone and Kitimat from Apache for US$2.75 bn
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Report summary
The purchase price represents a 60% discount to our published base valuation of the portfolio. This highlights, first-and-foremost, the risk associated with project delivery: the Wheatstone development is around 50% complete, but at risk of cost overruns and delays; Kitimat remains some distance from FID, and despite making progress in technical areas, has fallen behind competing North American LNG projects on the commercial side.
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Wheatstone
- Kitimat
-
Deal analysis
-
Heavily discounted valuation highlights project risks
- Cost overruns at Wheatstone are a major risk
- Kitimat has been heavily discounted
- Expansion of Wheatstone offers longer-term upside
-
Heavily discounted valuation highlights project risks
-
Strategic rationale
- Apache
- Woodside
- Oil & gas pricing and assumptions
Tables and charts
This report includes 7 images and tables including:
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Deal analysis: Table 1
- Apache's net debt/cash evolution
- Wheatstone project area
- Kitimat project area
What's included
This report contains:
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