Denbury Resources, Inc. (Denbury) has agreed to acquire an interest in producing properties in the Cedar Creek Anticline (CCA) of Montana and North Dakota from a wholly-owned subsidiary of ConocoPhillips for a cash consideration of US$1.05 billion. The company intends to fund the acquisition cost with cash proceeds of US$1.3 billion received from its Bakken asset sale and asset exchange with ExxonMobil, which was completed in December 2012. The transaction has an effective date of January 1, 2013.
Rationale behind Denbury Resources acquiring Cedar Creek Anticline assets in Montana and North Dakota from ConocoPhillips for US$1.05 Billion.
To understand the rational about how the current deal is in line with Denbury’s primary strategy of focusing on the extraction of oil from depleted, mature oil fields by using Carbon Dioxide (CO2) Enhanced Oil Recovery (EOR).
Geography Covered- US.
Reasons to Buy
Develop a sound understanding about how through this divestment, ConocoPhillips plans to optimize its portfolio and focus on its unconventional Bakken assets in North Dakota and Montana.
To know more about Denbury benefitting from economies of scale through acquisition of additional assets in CCA fields.
To have an understanding about how the current deal is in line with Denbury’s plans to use CO2 Enhanced Oil Recovery to extract oil from the mature fields.
Table of Contents
1 Table of Contents 1
1.1 List of Tables 1
1.2 List of Figures 1
2 Denbury Resources to Acquire Cedar Creek Anticline
Assets from ConocoPhillips for US$1.05 Billion 1
2.1 Deal Overview 1
2.2 Deal in Brief 1
2.3 The Current Deal is in Line with Denbury’s Primary
Strategy to Extract Oil from Mature Oil Fields through
CO2 Enhanced Oil Recovery 1
2.4 Through this Divestment ConocoPhillips Plans to
Optimize its Portfolio and Focus on its Unconventional
Bakken Assets in North Dakota and Montana 4
2.5 Deal Financials and Valuations 5
3 Appendix 7
3.1 Abbreviations 7
3.2 Sources 8
3.3 Methodology 8
3.4 Contact Us 9
3.5 Disclaimer 9
List of Tables
Table 1: Denbury Resources, Asset Transactions in the E&P
Industry in the US, January 2012 to Present 3
Table 2: ConocoPhillips, Asset Sale Transactions Across the
World, January 2012 to Present 4
Table 3: Companies Involved 5
Table 4: Financials of the Deal 5
Table 5: Target Information 6
Table 6: Target’s Production and Reserves Information 6
Table 7: Company Valuation Multiples 6
Table 8: Commodity Prices in US$, Last Close 7
Table 9: Acquirer Information 7
Table 10: Vendor Information 7
List of Figures
Figure 1: Denbury Resources, Location of Existing and
Acquired Assets in CCA Fields, Montana and North
Dakota, 2013 2
Figure 2: Denbury Resources, Projected Growth in Production,
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