On Tuesday, EXCO Resources (XCO) announced it was acquiring Chief Oil & Gas' Marcellus Shale assets for $459.4 million. The properties fall within the BG Group (BG.) area of mutual interest, so BG will have the opportunity to participate in 50% of the acquisition. The Chief assets fit well with EXCO's existing Marcellus Shale position in northeast Pennsylvania. Also, the deal comes as little surprise, given EXCO's improved balance she
et and ample liquidity to bolt-on acquisitions within its two emerging core assets in the Marcellus and Haynesville shales. If we ignore value for the 15 producing wells and 11 drilled uncompleted wells, the deal prices at roughly $9,188 per net acre. Assigning $100 million to the producing and drilled uncompleted wells (which we view as a reasonable estimate), the deal prices at roughly $7,188 per net acre.
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