Richard Zeits • 63 Comments
Richard Zeits • 20 Comments
Oct. 8, 2015, 7:40 AM
- Encana (NYSE:ECA) +6.4% premarket after agreeing to sell its Denver Julesburg Basin assets in Colorado for ~$900M to an entity 95% owned by Canada Pension Plan Investment Board and 5% by The Broe Group.
- The assets produced an average of 52M cf/day of natural gas and 14.8K bbl/day of crude oil and natural gas liquids in H1.
- ECA says the deal brings total cash proceeds from divestitures in 2015 to ~$2.7B and expects to reduce net debt in 2015 by $3B by year-end.
Sep. 29, 2014, 12:26 PM
- Encana’s (ECA +2.3%) takeover of Athlon Energy (ATHL +24.6%) is good news for Diamondback Energy (FANG +2.3%) and Energen (EGN +2.2%), according to analysts at Sterne Agee.
- The acquisition implies a value of $98/share for FANG, Sterne says, based on FANG's 85K net acre leasehold position, estimated 19.8K boe/day of Q3 production, $585M of assumed debt, and a $1.7B market value for the Viper Energy Partners (NASDAQ:VNOM) units it owns.
- The firm sees even more upside for EGN, as ECA’s price implies a value of $102/share for EGN, based on 180K net acres across both sides of the Permian Basin, 48K boe/day of Q3 Permian Basin production, 132M cfe/day of Q3 San Juan Basin, and $835M of pro forma net debt as of Sept. 30.
- Permian producers Laredo Petroleum (LPI +5%), Parsley Energy (PE +5%) and RSP Permian (RSPP +4.8%) also are higher following the acquisition news.
Sep. 29, 2014, 7:27 AM
- Encana (NYSE:ECA) agrees to acquire Athlon Energy (NYSE:ATHL) for $58.50/share in cash plus assumption of $1.15B of senior debt, bringing the total transaction value to ~$7.1B.
- The deal gives the no. 2 Canadian gas producer a large stake in Texas' oil-rich Midland Basin.
- ECA says the deal adds 140K net acres of land and production of ~30K boe/day, and that it will spend $1B next year to boost drilling in the new play.
- ATHL +24.3% premarket.
Aug. 11, 2014, 1:44 AM
- Blackstone (NYSE:BX) is nearing a deal to buy Royal Dutch Shell's (RDS.A, RDS.B) 50% stake in the Haynesville Shale formation for $1.2B.
- The gas field lies under large parts of Louisiana and Texas, and is also 50% owned by Encana (NYSE:ECA).
- A deal would add to Blackstone's energy holdings in Louisiana. In February 2012, Blackstone agreed to invest $2B in Cheniere Energy Partners, helping the company construct a gas-liquefaction plant in Louisiana for export markets.
Jun. 27, 2014, 7:17 AM
- Encana (ECA) agrees to sell its Bighorn assets in the Alberta Deep Basin to Jupiter Resources for ~$1.8B.
- The sale includes ~360K net acres of land along with ECA's working interests in all pipelines, facilities and service arrangements; total net proved reserves at the end of 2013 were ~1.1B cfe, with 75% of those reserves being natural gas.
- Jupiter Resources is a portfolio investment of funds managed by affiliates of Apollo Global Management (APO).
May 5, 2014, 5:42 PM
- Talisman Energy (TLM) and Statoil (STO) are considering selling their joint venture in the Eagle Ford basin, which could fetch more than $4B, Bloomberg reports.
- TLM is said to have solicited offers last year for its 50% interest in the JV and couldn’t find a buyer in part because STO wasn’t ready to exit.
- The report speculates that a sale could draw interest from large exploration companies such as Encana (ECA), Murphy Oil (MUR) and Devon Energy (DVN) that want to acquire more oil-producing properties.
Jan. 29, 2013, 10:56 AM
Encana (ECA +1%) may be a takeover target after the departure of its CEO, Bloomberg speculates, after a bet on natural gas wiped out more than a third of the Canadian explorer’s value. Even as gas prices remain depressed, ECA’s gas-rich formations in Canada and the U.S. may appeal to companies looking to export the fuel to Asia.| Jan. 29, 2013, 10:56 AM | 6 Comments
Dec. 24, 2012, 2:22 PM
EOG Resources (EOG -0.6%) is the “big winner” in the shale-gas deal between Chevron (CVX -0.9%) and Apache (APA -1.6%), UBS analysts write in a note to clients. EOG will realize an estimated $450M "for exiting a project it had little interest in pursuing," UBS says, while the deal likely will cause capital expenditure concerns for CVX and APA.| Dec. 24, 2012, 2:22 PM | 3 Comments
Dec. 24, 2012, 9:41 AM
Chevron (CVX) and Apache (APA) each agree to acquire 50% interests in the Kitimat liquefied natural gas project and proposed Pacific Trail Pipeline from EOG Resources (EOG) and Encana (ECA), with CVX becoming operator. CVX and APA also will acquire 50% interests in ~644K acres of petroleum and natural gas rights in the Horn River and Liard Basins in British Columbia from EOG and ECA, with APA becoming operator.| Dec. 24, 2012, 9:41 AM | 3 Comments
Dec. 20, 2012, 9:42 AM
The Canadian government confirms that Encana's (ECA) $2.2B JV with China's PetroChina (PTR) is not subject to review under the Investment Canada Act. ECA agreed to sell 49.9% of its big Duvernay natural gas and liquids play in Alberta to PTR days after the Canadian government said it would increase scrutiny of investment by state-own enterprises such as PTR.| Dec. 20, 2012, 9:42 AM
Oct. 19, 2012, 11:36 AM
Analysts agree that ExxonMobil (XOM) has the financial strength to buy a company like Encana (ECA -0.4%) but disagree on whether such a deal will take place as speculated. Hedgeye's Kevin Kaiser likes the idea after XOM's purchase of Celtic, whose assets are in the heart of ECA’s Canadian natural gas assets. But the hurdle for government approval could be high.| Oct. 19, 2012, 11:36 AM | 4 Comments
Jun. 19, 2012, 8:27 AM
CenterPoint Energy (CNP) agrees to acquire gathering and processing assets from Martin Midstream Partners (MMLP), including a 50% interest in Waskom Gas Processing, for ~$275M, and enters a 15-year agreement with Encana (ECA) to gather and treat natural gas from two East Texas fields.| Jun. 19, 2012, 8:27 AM | 1 Comment
Feb. 17, 2012, 8:22 AM
The shale gas frenzy continues, Encana (ECA) receiving $2.9B from Mitsubishi Corp. in return for a 40% stake in its holdings at Cutbank Ridge in B.C. The asset has proven undeveloped reserves of 900B cubic feet of natural gas equivalent. Encana +2.2% premarket. (PR) (earnings today as well)| Feb. 17, 2012, 8:22 AM
Dec. 7, 2011, 3:41 PM