• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 4 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 10 mins Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 3 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 3 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 7 hours Coal Boom in Asia is Real and a Long Trend
  • 5 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 13 hours Solar Panels at 26 cents per watt
  • 6 hours Huge UK Gas Discovery
  • 19 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 19 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 18 hours US to become net oil exporter in November: EIA
  • 17 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 16 hours US Shale Drilling lacks regulatory body.
  • 13 mins So it begins? Is the Guyanese gov. trying to start a witch hunt? Greed? Guyana investigating offshore oil leases controlled by Exxon, Tullow
Global Oil Market Surprisingly Oversupplied

Global Oil Market Surprisingly Oversupplied

Despite OPEC oil production cuts…

Canada’s Oil Patch Faces Investor Exodus

Canada’s Oil Patch Faces Investor Exodus

Capital investment across Canada’s oil…

U.S. Oil & Gas M&A Sees Best Q1 Ever

Oil Rigs

U.S. oil and gas mergers and acquisitions in Q1 2017 hit a record high value for a first quarter, boosted by a wave of mega deals and the attractive Permian shale play, PwC said on Thursday in its US Oil & Gas Deals insights.

Investor enthusiasm was high in the first quarter this year, driven by a pro-energy policy agenda, relatively stable price of oil, and advances in shale technologies, PwC said. A total of 53 deals were announced in Q1, worth $73.04 billion, a 160-percent surge in value year-on-year. In the upstream, 32 deals worth $36.60 billion were struck, which was a 304-percent jump in value compared to the first quarter of 2016. The Permian proved to be one of the hottest basins globally, and it attracted even foreign investment. Permian deals were a record high at $21.36 billion, PwC said.

Major players, such as IOCs, are changing their strategic portfolio positions, increasing their exposure to onshore acreage. This is reaffirming US shale is becoming the swing producer, at the expense of projects in deepwater and Gulf of Mexico,” said Seenu Akunuri, PwC US Oil and Gas Valuation Practice Leader.

The mega deals announced in the first quarter were 11, worth a total of $62.23 billion, with six in the upstream worth a combined $29.30 billion, and another five deals in the midstream segment.

In its previous report on U.S. oil and gas deals, PwC said that fourth quarter 2016 deal value was $84.8 billion, or 49 percent higher than Q3, and 168 percent higher than the fourth quarter of 2015. Back then, the analysts said that “As we move into 2017, deal-makers are in high gear, with a green flag and a full tank of gas.”

Related: How Far Will OPEC Go For $60 Oil?

Now, looking forward, PwC warns against rising headwinds at the end of the first quarter 2017 that may slow down M&A activity as we go into the second quarter, including “increasing seller expectations around value”. This quarter’s deal activity will probably depend very much on the ability of buyers and sellers to bridge that emerging gap in valuation, PwC noted.

“As the quarter progressed, we sensed that there was a little bit of a pullback as we exited the quarter,” said Doug Meier, US Oil & Gas Sector Deals Leader.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News