Encana Deal Brings San Juan Basin Asset Sales To US$4.7 Billion In Three Years
By agreeing to a US$480 million deal with Denver-based DJR Energy last week, Encana Corporation became the latest in a series of significant oil and gas producers to leave the San Juan Basin.
The basin, which covers areas in New Mexico and southwestern Colorado, has now seen companies divest upstream positions for a combined total of US$4.7 billion since the start of 2016, according to data available in the Evaluate Energy M&A product.
While the neighbouring Permian Basin has made countless headlines over the past few years with large companies spending billions to enter the area, deals in the more natural-gas weighted San Juan basin have shifted in the opposite direction.
Encana’s deal means that it has joined fellow publicly-listed U.S. producers such as Exxon Mobil Corporation (through XTO Energy), ConocoPhillips, Energen Corp. and WPX Energy Inc. in selling off San Juan Basin upstream assets over the past three years to focus on opportunities elsewhere. Private companies acquired the assets in each case.
BP plc has also been linked with asset divestment plans in the region to help fund its US$10.5 billion acquisition of U.S. shale assets from BHP Billiton in the Eagle Ford, Haynesville and Permian Basin areas.
Significant deals including San Juan Basin positions since Jan 1, 2016.
Source: Evaluate Energy M&A Database (* Energen’s sale in 2016 included assets in the Delaware sub-basin of the Permian Basin)