• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 25 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 1 hour US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 15 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 6 hours Mr
  • 3 hours Free market or Freeloading off the work of others?
  • 4 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 5 hours Marine based energy generation
  • 17 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 18 hours How to Create a Pandemic
  • 19 hours Apple to Bypass Internet and Beam Directly to Phones
  • 10 hours Which producers will shut in first?
  • 17 hours Real Death Toll In CCP Virus May Be 12X Official Toll
Alt Text

The Largest Oil Market Intervention In History?

While the figures quoted in…

Alt Text

Is Optimism In Oil Markets Misplaced?

OPEC+ appears willing to cut…

Alt Text

Oil Market Data Is About To Get Very Ugly

As the COVID-19 pandemic continues…

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