Global Energy Deals | Russell T. Rudy Energy LLC
When oil prices started collapsing in late 2014 many industry observers speculated as to when a wave of mergers and acquisitions (M & A) in the energy sector would begin. According to a recent article in “Rigzone” the move toward combinations is now in full force.
With prices now about two-thirds off their highs of last June, we are starting to see a number of “mega-mergers”. Culminating with Schlumberger’s recently announced purchase of Cameron International Corp., the last 12 months have been the most active in terms of energy M & A in a decade. In three of the last five quarters, deal volume has surpassed $160 billion.
Around the turn of the century, ExxonMobil, Chevron, and Total all expanded by absorbing smaller competitors, forming “super majors”. The fourth quarter of 1998 saw M &A activity of about $157 billion in today’s dollars. This included the merger of Exxon and Mobil. However, in the second quarter of this year, deal volume totaled $258 billion.
Don’t be surprised if we see even more combinations in the months ahead.
To read the article in its entirety, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=140319&utm .
