Tuesday, January 31, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home oil & gas

High Quality Oil And Gas Assets Should Drive An M&A Recovery | OilPrice.com

July 4, 2020
in oil & gas
High Quality Oil And Gas Assets Should Drive An M&A Recovery | OilPrice.com
Share on FacebookShare on Twitter


Latest Oil MArket NewsPosts

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target

Alberta overhauls system to clean up old oil and gas wells, with 90,000

Alberta overhauls system to clean up old oil and gas wells, with 90,000

The oil price collapse has taken its toll on mergers and acquisitions (M&A) across the U.S. oil and gas industry as companies preserve cash in these highly uncertain times.   

The appetite for dealmaking in the second quarter, when WTI Crude prices plunged to a negative $37 a barrel one day in April, was so low that Q2 ranked as the third-lowest quarterly value of upstream deals since 2009, oil & gas data analytics company Enverus said this week.

Compared to the first quarter, the value of oil and gas deals jumped by more than 200 percent in Q2 – to US$2.6 billion from just US$770 million in Q1, Enverus’ U.S. upstream M&A report showed.

However, the second-quarter deals included Pure Acquisition Corporation’s US$845-million merger with HighPeak Energy in the Permian’s Midland basin—a deal that was announced at the end of 2019 and was later recalibrated after the oil price crash. This was the biggest deal in terms of value in Q2.

The other major deals in the top five were for gas assets, predominantly in the Appalachia region, where buyers scooped low-cost assets amid stronger future pricing of natural gas compared to the lows in spot prices seen so far this year.

“While the spot market for natural gas is still suffering from low prices, the future curve 12 or 24 months out is significantly higher. That is permitting buyers to hedge future production at levels that support deal economics,” Andrew Dittmar, senior M&A analyst at Enverus, said.

The largest gas deal in Q2 was Shell’s sale of its Appalachia shale gas assets for US$541 million to National Fuel Gas Company (NFG).

Deals in the oil industry, however, continue to be scarce and challenged by volatile prices and uncertain demand recovery.

“Broadly, the market for new deals remains highly challenged, particularly in oil plays,” Dittmar added.   Related: Exxon Is Big Oil’s Outlier In The Post-Pandemic World

In Q1, the deal market collapsed, Enverus said in its M&A report for the first quarter, with all deals taking place before the crash in oil prices in early March, and the largest deals including a bankruptcy sale.

Looking beyond Q2, Enverus sees more gas asset sales, provided that futures prices stay high, with sales potentially extending from Appalachia to other areas of low-cost supply such as the Haynesville.

“However, the market for assets in major oil shale plays, which were the key driver of M&A values for quite a few years, is likely to remain challenged barring a rally in crude prices. Public companies of all sizes are facing significant financial headwinds, making it difficult to convince skeptical investors on the value of M&A,” Enverus said.

There could be some great value opportunities for deals in this environment, as consolidation is a necessity, Deloitte said in a recent report on the U.S. shale patch.

“The key question is what to buy and, more importantly, what not to buy. Any large acquisition or merger should be considered only if one plus one is greater than two on both operational and financial fronts,” according to Deloitte.

While…



Read More: High Quality Oil And Gas Assets Should Drive An M&A Recovery | OilPrice.com

Tags: AssetsDealmakingDriveGasHighM&AoilOil AssetsOil MarketsOil PricesOilPricecomQualityrecovery

Related Posts

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target
oil & gas

UK: Oil and Gas Production Efficiency Hits 80% Three Years ahead of Target

by Oil Market
July 31, 2020
0

Production efficiency on the UK Continental Shelf (UKCS) has improved for the seventh consecutive year and for 2019 reached...

Read more
Alberta overhauls system to clean up old oil and gas wells, with 90,000
oil & gas

Alberta overhauls system to clean up old oil and gas wells, with 90,000

by Oil Market
July 30, 2020
0

The Alberta government is revamping how it regulates oil and gas producers in an attempt to start addressing the...

Read more
Alberta overhauls system to clean up old oil and gas wells, with 90,000
oil & gas

Alberta overhauls system to clean up old oil and gas wells, with 90,000

by Oil Market
July 30, 2020
0

The Alberta government is revamping how it regulates oil and gas producers in an attempt to start addressing the...

Read more
UK Government ‘looking at’ oil and gas sector deal, Michael Gove says –
oil & gas

UK Government ‘looking at’ oil and gas sector deal, Michael Gove says –

by Oil Market
July 29, 2020
0

Michael Gove has reiterated the UK Government’s consideration of a north-east oil and gas sector deal and confirmed he...

Read more
Environmental law group seeks to stop Alberta inquiry into oil and gas
oil & gas

Environmental law group seeks to stop Alberta inquiry into oil and gas

by Oil Market
July 28, 2020
0

EDMONTON -- An environmental law group wants a court to suspend the Alberta government's inquiry into oil and gas...

Read more
Colorado scales back proposed fee hike on oil, gas industry after estimates
oil & gas

Colorado scales back proposed fee hike on oil, gas industry after estimates

by Oil Market
July 28, 2020
0

The Colorado Oil and Gas Conservation Commission is scaling back a proposed mill levy increase on oil and gas...

Read more
Next Post
Big Oil confronts possibility of terminal demand decline

Big Oil confronts possibility of terminal demand decline

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

Iran Experiences Positive Economic Growth without Oil: President – Politics

Iran Experiences Positive Economic Growth without Oil: President – Politics

3 years ago
The dismantling of the oil industry in Venezuela and the defense

The dismantling of the oil industry in Venezuela and the defense

3 years ago
What’s Behind Rising Tensions in the South China Sea?

What’s Behind Rising Tensions in the South China Sea?

3 years ago
Lime Oil Market with Competitive Analysis, New Business Developments and

Lime Oil Market with Competitive Analysis, New Business Developments and

3 years ago
Norway: Tax Breaks to Spur Investments in New Offshore Projects

Norway: Tax Breaks to Spur Investments in New Offshore Projects

3 years ago
Oil sinks on weak US economic data, uncertain politics

Oil sinks on weak US economic data, uncertain politics

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com