U.S. Oil & Gas M&A Maintains Momentum in Q3 Despite Challenging Environment for E&Ps

As the shale patch struggles to find buyers, conventional assets, corporate consolidation, and foreign buyers among factors driving activity Austin, Texas (October 2, 2019) – Enverus, the leading oil and gas SaaS and data analytics company, has released its summary of Q3 2019 deal activity and published a list of the Top 10 U.S. upstream M&A transactions. Despite a difficult market, M&A activity maintained the momentum established in Q2 surpassing $17 billion in Q3. That approaches the 2016-2018 historical quarterly average of $19 billion and puts year-to-date M&A at more than $85 billion. “Most public E&Ps are highly limited in access to external capital right now,” said Enverus Senior M&A Analyst Andrew Dittmar. “Shale companies are turning to deals as another option in the toolbox to bridge the gap to free cash flow and hopefully shift market sentiment back in their favor. In contrast to prior years, where Permian asset deals dominated, we are seeing broad geographic diversity in the current market and a variety of deal types including joint ventures and royalties.” Reaching into a region that has not often been at the forefront of deals, Hilcorp purchased BP’s Alaska business including its Prudhoe Bay and Trans Alaska Pipeline… continue reading

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Source: CTRM Center

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