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ExxonMobil Canada to Acquire Celtic Exploration for US$3.15 Billion - Acquisition to Help Exxon Gain Liquid Rich Natural Gas Plays in Canada Product Image

ExxonMobil Canada to Acquire Celtic Exploration for US$3.15 Billion - Acquisition to Help Exxon Gain Liquid Rich Natural Gas Plays in Canada

  • ID: 2323186
  • November 2012
  • Region: Canada
  • 9 pages
  • GlobalData

ExxonMobil Canada to Acquire Celtic Exploration for US$3.15 Billion - Acquisition to Help Exxon Gain Liquid Rich Natural Gas Plays in Canada – Deal Analysis from GlobalData

Summary

Exxon Mobil Corporation (Exxon), has agreed to acquire Celtic Exploration Ltd. (Celtic) through its subsidiary, ExxonMobil Canada Ltd., for a purchase consideration of CAD3.1 billion (US$3.15 billion), including the assumption of CAD512.8MM (US$521.46MM) in debt and working capital obligations. Under the terms of the agreement, Celtic will have to pay a CAD90MM (US$91.52MM) termination fee to ExxonMobil Canada in certain circumstances if the transaction is not completed. FirstEnergy Capital Corp. and RBC Capital Markets are acting as financial advisors, while Borden Ladner Gervais LLP is acting as legal advisor to Celtic in the transaction. The board of directors of Celtic has unanimously approved the transaction. The transaction is subject to customary closing conditions, including receipt of court, shareholder and regulatory approvals.

Scope

- Rationale behind Exxon acquiring stakes in liquids-rich natural gas assets.
- Rationale behind the divestment of Celtic and formation of Spinco.
- Geography Covered- Canada.

Reasons to buy

- To know about Exxon's gain from the acquisition of liquids rich gas assets.
- To understand the scope of LNG development in British Columbia.
- To develop a sound understanding about the assets of Celtic and Spinco.

1
1

1.1 List of Tables
1.2 List of Figures
2 ExxonMobil Canada to Acquire Celtic Exploration for US$3.15 Billion
2.1 Deal Overview
2.2 Deal in Brief
2.3 Acquisition to Help Exxon Gain Liquids-Rich Natural Gas Plays in Canada
2.4 Exxon to Gain from the Prolific Assets of Celtic
2.5 Exxon Acquires Celtic at a Premium of around 32% based on the 2P Reserve Multiple
2.6 Deal Financials and Valuations
3 Appendix
3.1 Sources
3.2 Methodology
3.3 Contact Us
3.4 Disclaimer

1.1 List of Tables
Table 1: Oil and Gas Industry, British Columbia, Major Acquisitions of Assets by Companies , 2011 to Present
Table 2: Oil and Gas Industry, North America, Major Acquisition, 2011 to Present
Table 3: Oil and Gas Industry, Alberta and British Canada, 2P Reserve Multiple for Similar Deals, 2010 to Present
Table 4: Companies Involved
Table 5: Financials of the Deal
Table 6: Advisor Information
Table 7: Target Information
Table 8: Target’s Financial Information
Table 9: Share Price Information
Table 10: Company Valuation Multiples
Table 11: Target’s Production and Reserves Information
Table 12: Company Valuation Multiples
Table 13: Commodity Prices in $, Last Close
Table 14: Acquirer Information

1.2 List of Figures
Figure 1: Canada, Location of Celtic’s Assets, 2012
Figure 2: Rise in Stock Price of Celtic After the News of Acquisition, October 15, 2012 to October 29, 2012

Note: Product cover images may vary from those shown

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