The report below gives a good overview of the Spring 2021 M&A activity in the Energy Industry Sector. The Energy industry is poised for faster growth in 2021 and the global demand is set to increase by 4.6% offsetting the 4% contraction in 2020 as per research published by IEA. Almost 70% of the projected increase in global energy demand is in emerging markets and developing economies, where demand is set to rise to 3.4% above 2019 levels. Energy use in advanced economies will be 3% below pre-Covid levels according to IEA. Third waves of the pandemic continue to extend the restrictions on movement and global energy demand has been low. But stimulus packages and vaccine rollouts are boosting the outlook for economic growth.

Posted by Roy Graham.

Read the Entire Spring 2021 Energy Report Here

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 2019 included 75 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in November when OMOG JV LLC, a joint venture of Rattler Midstream LP and Oryx Midstream Services LLC, acquired Reliance Gathering LLC, a portfolio company of Metalmark Capital LLC, for US$356 million in cash. Reliance Gathering is a crude oil gathering affiliate of Permian Basin-focused Reliance Energy. Reliance is a private Midland based oil and gas company focused on developing upstream and midstream assets. The Company has over 100,000 net acres in the Permian Basin, including approximately 40,000 net acres in the prolific Northern Midland Basin.

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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 2019 included 53 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in August when Qatar Investment Authority, a subsidiary of Government of Qatar, acquired an undisclosed minority stake in Oryx Midstream Services LLC, a portfolio company of Stonepeak Partners LP for US$550 million. The transaction enhances Qatar Investment Authority’s United States Portfolio and its investment in major infrastructure projects. Founded in 2013, Oryx Midstream Services is located in Midland, Texas and acquires and develops oil and natural gas reserves.

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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 2019 included 58 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Austin Energy acquired the Nacogdoches Generating Facility from Southern Power Co., which is ultimately owned by The Southern Co. for US$460 million. The transaction enhances Austin Energy’s portfolio of services and products. Nacogdoches Generating Facility is located in Texas.

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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.

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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

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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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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The report below presents you with a good overview on 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 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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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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