M&A Record | Russell T. Rudy Energy LLC
“Rigone” reports that a study by PwC (Price Waterhouse Coopers) found that oil field M&A (Merger and Acquisition) activity reached a record level in the first quarter of 2017. Driven by Donald Trump’s agenda, an agreement by OPEC and other producing nations to cut back on production, and relative price stability, 53 deals were transacted for a value of $73.04 billion. Compared to the first quarter of 2016, the number of transactions increased by 36% and the value of these deals by 160%.
However, PwC noted that toward the end of the quarter the deal flow was starting to abate as oil prices retreated somewhat. Doug Meier of PwC observed, “As the quarter progressed we sensed there was a little bit of pullback as we exited the quarter.”
Assets in the Permian Basin, arguably the hottest oil and gas play in the world, were involved in 20 deals valued at $21.36 billion, a new high for the area.
Eleven megadeals for $62.23 billion constituted the majority of the value for first quarter 2017 transactions. Surprisingly, the financially challenged oil field service sector was responsible for 10 M&A deals valued at $29.6 billion, the sector’s most active period since the price crash of 2014.
To read the article, which includes an interesting graphic breakdown of deals by major shale play, please go to http://www.rigzone.com/news/article.asp?hpf=1&a_id=149795&utm_source=DailyNewsletter&utm_medium=email&utm_term=2017-04-20&utm_content=&utm_campaign=feature_1 .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
