Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Energy Industry Sector

By Roy Graham | May 10, 2019

The report below gives a good overview of the second quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q1 2019 included 69 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Diversified Gas & Oil Plc acquired gas assets, from HG Energy II Appalachia LLC, ultimately owned by HG Energy LLC for US$400 million in cash. The acquisition is expected to increase the production capacity of Diversified Gas & Oil Plc. The assets to be acquired comprise107 unconventional producing gas wells with a combined net daily production of more than 20,000boe. The wells are located in the West Virginia and Pennsylvania.

Industry Indicators

  • The average US retail price for diesel and regular gas, which influences profitability for oil and gas companies, rose 0.5% and 2.9%, respectively, in the week ending April 15, 2019, compared to the same week in 2018.
  • The spot price of crude oil, which affects profitability for oil and natural gas operations, fell 2.9% in the week ending April 12, 2019, compared to the same week in 2018.

Posted by Roy Graham.

Read the Entire Energy 2nd Quarter Newsletter Here

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