Global mergers and acquisitions (M&A) and upstream growth in the oil and gas sector totalled US$130.5bn in Q2 2019, according to data and analysis firm GlobalData
The firm stated that this was a substantial increase from the US$27.8bn in Q1 2019. On the volume front, the number of deals decreased marginally from 316 in Q1 2019 to 315 in Q2 2019.
Praveen Kumar Karnati, oil and gas analyst at GlobalData, said, “A total of 107 M&A deals, with a combined value of US$21.1bn, were recorded in the conventional segment, and 44 deals, with a combined value of US$62.3bn, were recorded in the unconventional segment in Q2 2019.”
Capital raising, through equity offerings, witnessed a substantial increase in deal value, at US$13bn in Q2 2019, compared to US$1.5bn in Q1 2019. The number of equity offering deals also increased by 19 per cent from 88 in Q1 2019 to 105 deals in Q2 2019.
Capital raising, through debt offerings, registered an increase of 48 per cent in the number of deals and 62 per cent in deal value with 49 deals, with a combined value of US$28.8bn in Q2 2019 compared to 33 deals, with a combined value of US$17.8bn, in the previous quarter. In the upstream sector, in Q2 2019, 10 private equity/venture capital deals with a combined value of US$5.3bn were recorded, compared to 16 deals with a combined value of US$1.3bn, in Q1 2019.
Karnati added, “The top M&A deal of Q2 2019 was Occidental Petroleum’s acquisition of Anadarko Petroleum for US$55bn, including the assumption of Anadarko’s debt.
“As of year-end 2018, the company had proven (1P) reserves of approximately 667 mmbbl of oil, 268 mmbbl of natural gas liquids (NGLs), and 3,230 bcf of gas. In 2018, the company had production of approximately 140 mmbbl of oil, 38 mmbbl of NGLs, and 390 bcf of gas. The transaction implies values of US$82,613.17 per boe of daily production and US$37.33 per boe of 1P reserves.”