Anchored by Occidental’s Record $57 Billion Deal, Oil & Gas M&A Shows Muted Rebound in Q2 201

Analysts caution one acquisition representing 88 percent of total value could lead to misinterpretation of a major recovery Austin, Texas (July 2, 2019) – Drillinginfo, the leading energy SaaS and data analytics company, published a list of the Top 10 U.S. upstream M&A deals in the second quarter of 2019 and summary of activity. While deals rebounded off historic lows in Q1 to reach $65 billion, analysts caution the value was overwhelmingly driven by Occidental’s $57 billion acquisition of Anadarko, which is the fourth-largest oil and gas upstream deal ever. That single acquisition contributed 88 percent of total deal value in Q2. Excluding Occidental-Anadarko, Q2 M&A largely matched Drillinginfo analyst expectations with a modest rebound to $7.6 billion. While nearly a four-fold increase over the $2.0 billion low in Q1 M&A, $7.6 billion is less than half of the average quarterly total of the $19 billion seen 2017-2018. “Occidental dominated headlines this quarter with assertive maneuvering to beat out much larger rival Chevron and secure a deal with Anadarko,” said Drillinginfo M&A analyst Andrew Dittmar. “While Anadarko’s assets span the globe, the deal is largely a play on U.S. shale —particularly in the juggernaut Permian which continues to power U.S.… continue reading

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Source: CTRM Center

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