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Archive for the ‘Energy’ Category

M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Feb 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2018 included 52 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was closed in November when Ørsted A/S acquired Deepwater Wind, LLC from D E Shaw & Co LP for US$510 million in cash. The acquisition is in line with growth strategy of Ørsted. Ørsted engages in the provision of renewable energy solutions. It operates through the following segments: wind power, bioenergy & thermal power, distribution and customer solutions. Founded in 2007, Deepwater Wind is located in Rhode Island and operates offshore wind power projects.

West Texas Intermediate had a difficult quarter due to an over-supplied market.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, rose and fell 8.6% and 2.6%, respectively, in the week ending December 10, 2018, compared to the same week in 2017.
  • Crude shipments to the U.S. from OPEC and its partners fell to 1.41 MM bpd in January, the lowest in five years according to World Oil News.
  • Through November 2018 US exports of natural gas continued to rise for the third straight year with the aid of increased pipeline exports to Mexico and significant increases in the export of LNG.

Posted by Roy Graham.

Read the Entire Energy 1st Quarter Newsletter Here


M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Oct 26, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q3 2018 included 130 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in July when Independence Contract Drilling, Inc. acquired Sidewinder Drilling. LLC for US$148.8 million in stock. The acquisition complements Independence Contract Drilling’s existing pad-optimal drilling fleets and operations focused in the Permian Basin, Haynesville region and other basins in Texas. Independence Contract Drilling engages in the provision of land-based contract drilling services for oil and natural gas producers. Founded in 2011, Sidewinder Drilling is located in Houston, Texas and owns and operates a fleet of premium land drilling rigs and provides contract drilling services.

During the past decade, the U.S. trade gap for energy products narrowed. From 2003 to 2007, the value of energy imports was about 10 times greater than the value of exports.

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M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Jul 31, 2018

The report below presents you with a good overview on the third Quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q2 2018 included 63 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in April when Triple Crown Resources, LLC acquired Permian Oil & Gas Assets from Broad Oak Energy II, LLC for US$400 million. The acquisition would expand Triple Crown Resources’ oil and gas asset portfolio. The Permian Oil & Gas Assets are located in Irion County, Texas.

The price of oil fluctuated in the second quarter driven, in part, by OPEC production rates.
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M&A Quarterly News In The Energy Industry Sector

By Roy Graham | May 07, 2018

The report below presents you with a good overview on the second Quarter M&A activity in the Energy Industry SectorM&A activity for North American based target companies in the Energy sector for Q1 2018 included 58 closed deals, according to data published by industry data tracker FactSet.

One of the notable transactions of the quarter was announced in February when Fieldwood Energy, LLC acquired the deep-water Gulf of Mexico oil & gas business from Noble Energy, Inc., for US$580 million in cash and contingent payout, via insolvency. Under the terms of transaction, Fieldwood Energy paid US$480 million in cash and would pay an additional US$100 million in contingent payout. Additionally, Fieldwood Energy assumed all abandonment obligations associated with the properties, which were recorded at a book value of US$230 million as of December 31, 2017. Fieldwood Energy funded the acquisition from the proceeds from its Rights Offering. The transaction enhances Fieldwood Energy’s portfolio of oil and gas business.

The price of oil remained relatively flat in Q1 2018 fluctuating from the high to low $60s.
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M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Mar 05, 2018

The report below presents you with a good overview on the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2017 included 90 closed deals, according to data published by industry data tracker FactSet. 

One of the largest transactions of the quarter closed in October when Global Infrastructure Management, LLC acquired Medallion Gathering & Processing LLC, a joint venture between EMG Fund II Management LP (51%) and Laredo Petroleum Inc (49%), for US$1.8 billion in cash, subject to certain adjustments. Medallion Gathering & Processing develops midstream solutions. It offers construction of all facilities and pipelines to gather process and deliver production from wells. The company is headquartered in Irving, TX.

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M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Nov 03, 2017

The report below presents you with a good overview on the fourth quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q3 2017 included 69 closed deals, according to data published by industry data tracker FactSet. The average purchase price was $192 million. According to data from the U.S. Energy Information Administration, U.S. crude oil production is estimated to have averaged 9.3 million barrels per day (b/d) in September, an.. Read more »


M&A News In The Energy Industry Sector

By Roy Graham | Oct 13, 2017

The report below gives a good overview of the third quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q2 2017 included 44 closed deals, according to data published by industry data tracker FactSet. The average transaction value was $470 million.
One of the notable deals of the quarter closed in April when NOVA Chemicals Corp, a subsidiary of state-owned Mubadala Investment Co, acquired Williams Olefins LLC, a subsidiary of Williams Partners LP and ultimately owned by The Williams Cos, Inc., for US$2.1 billion in cash. The transaction allows NOVA Chemicals Corp entry to the US Gulf Coast market. NOVA Chemicals Corp. produces plastics and chemicals. Williams Olefins operates as a holding company with interests in the production of natural gas and petroleum products.

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Energy Sector Q1 M&A News

By Roy Graham | Mar 08, 2017

energy sectorM&A activity for North American based target companies in the Energy sector for Q4 2016 included 118 closed deals, according to data published by industry data tracker FactSet. The average transaction value was $271 million.

With oil prices making a slow recovery, US oil production activity is becoming increasingly concentrated in the Permian Basin. Spanning parts of western Texas and southeastern New Mexico, the Permian Basin’s highly productive fields and substantial transportation infrastructure make it one of the few places for profitable oil production when prices are relatively low. (US oil prices, which were over $100 per barrel as recently as August 2014, dropped below $30 per barrel in early 2016 and averaged $45 per barrel in the first week of November 2016.) The Permian now holds nearly as many active oil rigs as the rest of the US combined. Read more »


M&A News | Energy Sector

By Roy Graham | Dec 02, 2016

M&A News | Energy SectorM&A News | Energy Sector – Oil producers can better withstand downturns in oil prices by looking for efficiencies in their operations. As the oil industry continues to struggle, some bright spots are emerging as producers find ways to boost efficiency enough to make up for low per-barrel prices. Companies have to carefully manage well productivity to be sure per-barrel costs don’t exceed market value. Three shale producers recently surprised the market by announcing productivity gains without higher costs or concessions from vendors. Factors from linking cost cutting and executive pay to boosting the amount of sand used in fracking to design changes have led to doubled production and a 40% drop in costs, according to Reuters. While rig count has fallen in North Dakota’s Bakken Shale oil region in the last six years, production per rig has risen from around 200 barrels a day in 2010 to just below 800 barrels per day in 2016, according to The Wall Street Journal.

New rules from the FAA authorizing drone flights for businesses, with limitations, could open up a whole host of uses for drones within the oil and gas field services industry. The rules require drones to stay in view of the operator but the unmanned craft could be used to inspect oil field equipment, help map fields, monitor assets, and take on dangerous tasks without risk. Oil and gas companies around the globe have increasingly been using drones for a variety of operations.

Industry Indicators

  • The average US retail price for diesel and regular gas, which influences profitability for oil and gas companies, fell 4.7% and 7.3%, respectively, in the week ending September 12, 2016, compared to the same week in 2015.
  • The spot price of crude oil, which affects profitability for oil and natural gas operations, rose 1.8% in the week ending September 9, 2016, compared to the same week in 2015.

Posted by Roy Graham.

Read the Entire Energy M&A 4th Quarter Newsletter Here


Energy Sector M&A News

By Roy Graham | Aug 18, 2016

energy sector m&a newsEnergy Sector M&A news for North American based target companies in the Energy sector for Q2 2016 included 162 closed deals, according to data published by industry data tracker FactSet.  The average transaction value was $113 million.

Pressured by continued low oil prices and a global supply glut, several leading US oil explorers are selling more than $4 billion in assets. For companies still holding cash, it could be time to buy. Anadarko, Chesapeake Energy, Noble Energy, and Statoil ASA recently announced plans to sell assets totaling about $4.3 billion. Marathon Oil has already sold $1.3 billion worth of assets. Meanwhile, US rig counts continue to decline, as oil prices remain at less than half of their 2014 peak.

Utilities in several US states are piloting residential smart energy storage programs to reduce emissions and generation costs during peak times. Companies in Kentucky, New York, and Vermont — Glasgow Electric Plant Board, Consolidated Edison, and Green Mountain Power — are installing smart energy storage devices in selected customer homes. The devices capture power from the grid during periods of low demand and release power during high-cost peak demand periods, reducing the need to supply power from traditional generation plants. All three programs use software to remotely manage the residential units as if they are a single power source, according to UtilityDIVE; the model is called a virtual power plant. The utilities are partnering with device manufacturers Sunverge, SunPower, and Tesla Motors.

Industry Indicators

  • The average US retail price for diesel and regular gas, which influences profitability for oil and gas companies, fell 14.2% and 20.5%, respectively, in the week ending July 11, 2016, compared to the same week in 2015.
  • The spot price of crude oil, which affects profitability for oil and natural gas operations, fell 10.8% in the week ending July 8, 2016, compared to the same week in 2015.

Posted by Roy Graham.

Read the Entire Energy M&A 3rd Quarter Newsletter Here