Pioneer Natural Resources To Sell 45% Stake In Eagle Ford Shale Acreage To Reliance Industries: Reliance's Presence In North American Shale Play Will ... Of This Move - Deal Analysis From GlobalData

Pioneer Natural Resources To Sell 45% Stake In Eagle Ford Shale Acreage To Reliance Industries: Reliance’s Presence In North American Shale Play Will Increase As A Result Of This Move - Deal Analysis From GlobalData

Summary

Pioneer Natural Resources Company, (Pioneer) and its partner Newpek, LLC, (Newpek) agreed to sell 45% of their respective interest in approximately 212,000 net acres leased by the company in the highly prospective Eagle Ford Shale play to Reliance EagleFord Upstream LP, a wholly-owned U.S. subsidiary of Reliance Industries Limited, (Reliance) for a consideration of $1,350 million. Reliance will pay $266 million in cash to Pioneer at closing and will pay an additional $879 million to carry Pioneer's share of future drilling costs.

Following the transactions, Pioneer, Reliance and Newpek will own 46%, 45% and 9% in the EagleFord Shale play, respectively. The joint venture will have an approximate net working interest of 91% in 289,000 gross acres implying 263,000 net acres. The transaction implies deal value of $14,165.79 per acre of land.Scope

• Rationale behind Reliance acquiring assets from Pioneer
• Strategic Benefits for the companies involved
• Geography covered - US
• Deal Financials and Valuations
• Information on Reliance, Pioneer

Reasons to buy

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