- Ultra is increasing its footprint in Pinedale by acquiring all of Shell’s properties in the field in a $1+ billion transaction.
- The acquisition is a unique consolidation opportunity that makes strategic and operating sense for Ultra.
- Consideration equates to ~$1.63-$1.84 per proved developed producing Mcfe.
- The acquisition increases Ultra’s leverage to natural gas price which may “cut both ways.”.
- Indirectly, the transaction should benefit QEP Resources via increased volumes for its processing plants.