• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 8 minutes China Faces Economic Collapse
  • 12 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 14 minutes Iran in the world market
  • 17 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Experts review drone damage . Say Saudis need to do a lot of explaining.
  • 27 mins Saudis Confirm a Cruise Missile from Iranian Origin
  • 16 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 16 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 12 hours USA Wants Iran War -- Shooty Shooty More
  • 12 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 5 hours Aramco Production
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 18 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 9 hours Trump Will Win In 2020 And Beyond..?
  • 10 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

US Oil And Gas M&A Remains Lackluster

While the value of mergers and acquisitions in the oil and gas sector in Q2 was greater than in Q1, they are still unremarkable, considering that almost 90% of the M&As in the sector was a single deal, according to data released by Drillinginfo on Tuesday, cited by Reuters.

Without the Occidental/Anadarko tie up, Q2 M&A in the US exploration and production companies sector reached just shy of $8 billion—the mega merger accounted for the remaining $65 billion.

That less than $8 billion in oil deals in Q2 is about half of the $19 billion quarterly average seen across 2017 and 2018, the Drillinginfo data showed, as lenders cinch tighter their purse strings to sector players, and as investors clamor for companies to dig deep into their pockets to return money to shareholders rather than to amass additional assets.

Global mergers and acquisitions in this sector as of late has focused on disposing of non-profitable assets and optimizing the ones they intend to hang onto. To this end, we’ve seen Shell moving to divest nearly $10 billion in assets over a two year period while at the same time, acquiring BG Group for a cool $53 billion, not to mention sonnen, Greenlots, Limejump, and more. We’ve seen ExxonMobil dump some GoM assets in favor of some assets in Brazil. Total made a move to snatch up Toshiba’s US LNG business And that is just the start.

For the oil and gas companies in the United States, Q1 2019 mergers and acquisitions hit a 10-year low—to $1.6 billion according to Drillinginfo. This compares to $22.3 billion for Q1 2018. For this reason, the increase in M&As this quarter over the levels seen in Q1 is an unimpressive figure, relatively speaking.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play