Permian vs Montney I had a second look at recent COP acquisition of Shell assets. Paid $9.5 billion US for 200,000 boed (2022 production) and a relatively small acreage of 225,000 net acres. I was looking for the percentage of liquids in the mix but couldn't find. Probably high.
The acquisition of Velvet assets cost C$750 million ($600 million US). Relatively small production of 20,600 boed but 280,000 acres.
One must include infrastructure, etc. but no matter how you measure, it appears to me that the assets and shares of Canadian E&Ps are trading at a deep discount to U.S. The entire proforma SDE EV is a small fraction of what COP paid for the acquisition. Yes, Montney is landlocked compared with Texas which has access to deep ports but price differentials are not that wide while the TMX and a large LNG export projects are under construction and only a few years away.