M&A Quarterly News In The Energy Industry Sector

M&A Quarterly News In The Energy Industry Sector

By Roy Graham

October 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.

Industry Indicators

  • The average US retail price for diesel and regular gas, rose 16.3% and 5.5%, respectively, in the week ending September 10, 2018, compared to the same week in 2017.
  • The spot price of crude oil rose 46.8% in the week ending September 7, 2018, compared to the same week in 2017.
  • US retail sales for gasoline stations increased 15.6% in the first eight months of 2018 compared to the same period in 2017.

Posted by Roy Graham.

Read the Entire Energy 4th Quarter Newsletter Here