Skip to main content

M&As helped oil and gas companies survive last five years

Published by
World Pipelines,


Mergers and acquisitions (M&A) played an important role in helping oil and gas companies survive through one of the most tumultuous times over the last five years, as oil price continues to be volatile ever since falling from US$100 a barrel in 2014, according to GlobalData, a leading data and analytics company.

 

M&As helped oil and gas companies survive last five years

The company’s report: ‘M&A in Oil and Gas’ reveals that falling revenues and rising debts compelled oil and gas companies to realign their strategic objectives and reshape their portfolios, leading to a large number of M&A deals.

Ravindra Puranik, Oil and Gas Analyst at GlobalData, comments: “Oil majors, especially Total, ExxonMobil, Chevron, Equinor, and Shell, were involved in a number of deals as they acquired companies and assets at attractive valuations, while also offloaded the ones that could impact profitability.”

GlobalData’s thematic research identifies upstream companies such as Felix Energy, Endeavor Energy Resources and Laredo Energy; and midstream players namely American Midstream Partners and WhiteWater Midstream as potential acquisition targets in the oil and gas industry over the next two years.

Oil and gas companies executed around 10 000 M&A deals in the five years to November 2018. More than 60% of the deals that were completed were in the upstream sector. The shale patches in the US and the oil and gas fields in the North Sea continental shelf featured prominently in these upstream deals.

The slowdown in upstream activity due to low oil prices also had a drastic impact on the equipment and services sector. 

Puranik adds: “As oil and gas companies scaled back their operations and postponed expansion plans, the number of market opportunities declined considerably for oilfield service providers, leading to an industry-wide consolidation.”

Read the article online at: https://www.worldpipelines.com/business-news/14012019/mas-helped-oil-and-gas-companies-survive-last-five-years/

You might also like

TechnipFMC

[WEBINAR] Pipeline leak detection: Technologies for peace of mind

In this webinar, TechnipFMC’s Brian Woods and Daniel Mabily will cover two unique technologies for addressing leak detection, how they operate and ways to optimize them in a multilayer configuration as part of a pipeline integrity solution.
Register for free today »

 
 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

ExxonMobil news