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The first quarter of 2023 showed that buyer interest remained high in the new year for the Eagle Ford shale of south Texas, according to a recent report by Calgary-based analytics firm Enverus Intelligence Research. US upstream mergers and acquisitions (M&A) deals reached 8.6 billion in transacted value in the quarter in 16 deals. The Eagle Ford saw over 5 billion in deal activity for what Enverus called a "surprising resurgence in the mature play." Overall, deal value was down more than 20% vs. the first-quarter average since 2016 and continued its multiyear collapse with a disclosed value of 80% less than the first-quarter average, Enverus reported. However, Andrew Dittmar, director at Enverus Intelligence Research, noted that the quarter was an outlier regarding deal targets and types of upstream transactions.
- North America > United States > Texas (1.00)
- North America > Canada > Alberta > Census Division No. 6 > Calgary Metropolitan Region > Calgary (0.26)
- Energy > Oil & Gas > Upstream (1.00)
- Banking & Finance (1.00)
Merger and acquisition (M&A) deals among US exploration and production (E&P) firms amounted to more than $17 billion during the third quarter, according to a report from oil and gas data analytics firm Enverus, formerly Drillinginfo. The total is near the 2016–2018 historical quarterly average of $19 billion and puts year-to-date M&A at more than $85 billion. The current market is characterized by an increase in private capital, geographical diversity, and a variety of transaction types, including joint ventures (JVs) and royalty deals, said Andrew Dittmar, Enverus senior M&A analyst. "Most public E&Ps are highly limited in access to external capital right now," Dittmar said. "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."
- Energy > Oil & Gas > Upstream (1.00)
- Banking & Finance > Trading (1.00)
- Reservoir Description and Dynamics > Unconventional and Complex Reservoirs > Shale oil (0.70)
- Reservoir Description and Dynamics > Unconventional and Complex Reservoirs > Shale gas (0.70)
- Management > Asset and Portfolio Management > Acquisition and divestiture (0.56)
- Management > Energy Economics > Unconventional resource economics (0.51)
The three pending deals – ExxonMobil's bid for Pioneer Natural Resources, Chevron's offer for Hess, and Occidental Petroleum's quest for CrownRock--brought deal values to a record-setting 144 billion in the fourth quarter. "Oil and gas is undergoing a historic consolidation wave comparable to what occurred in the late 1990s and early 2000s, giving rise to the modern supermajors," said Andrew Dittmar, senior vice president at Enverus. "After a decade of lowered investment in exploration and with the major US shale plays largely defined, M&A has become the preferred tool to replace declining reserves and secure longevity in these companies' profitable upstream businesses. For the best-quality resource, there are also now more buyers than sellers, driving prices upward," he said. EIR said the Permian Basin stands "well atop the heap for remaining resources, offering both the most high-quality remaining drilling opportunities and the greatest potential for resource expansion from the prolific region's stacked resource benches."
Mergers and acquisition (M&A) activity in the US oil and gas sector slowed significantly in 2022, falling 13% on a year-over-year basis and falling 3 billion from a third-quarter high. A new report from Enverus Intelligence Research said deal count plunged to its lowest level since 2005, with US upstream M&A activity delivering 58 billion transacted in 160 deals, including the 13 billion from 26 deals in the fourth quarter. Overall, the average deal value fell by only 20%, while the volume of deals collapsed to a nearly 2-decade low. "Large-cap public companies like Devon Energy, Diamondback Energy, and Marathon Oil dominated deal activity in the back half of 2022," said Andrew Dittmar, director at Enverus Intelligence Research. "These buyers have the balance sheet strength and favorable stock valuations to take advantage of large, high-quality offerings from private sellers. "Critically, they can strike deals that are both accretive to current cash flow and extend their runway of drilling locations.
US oil and gas deals boomed during the second quarter of 2023 as private- equity (PE) firms unloaded shale portfolio investments and public companies snapped up smaller rivals, according to a report by Calgary-based analytics firm Enverus Intelligence Research. Upstream mergers and acquisitions for the quarter reached 24 billion--almost three times that of the first quarter--with the Permian Basin retaining its hold as the center of activity, Enverus reported. The one notable exception was Chevron's purchase of the primarily DJ Basin-focused producer PDC Energy for 7.6 billion, though PDC has a presence in the Permian's Delaware Basin. There were 20 deals with an average value of 1.2 billion in the quarter, which was more than double the average for first-quarter deals, Enverus reported. "The second quarter saw a thunderous return to Permian M&A after a relatively quiet start to the year," said Andrew Dittmar, director at Enverus Intelligence Research.
- North America > United States > Texas (0.57)
- North America > United States > New Mexico (0.57)
- North America > Canada > Alberta > Census Division No. 6 > Calgary Metropolitan Region > Calgary (0.26)
- Banking & Finance (0.93)
- Energy > Oil & Gas > Upstream (0.72)
- North America > United States > Texas > Permian Basin > Yeso Formation (0.99)
- North America > United States > Texas > Permian Basin > Yates Formation (0.99)
- North America > United States > Texas > Permian Basin > Wolfcamp Formation (0.99)
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