US oil and gas deals insights: Q1 2019

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.

Oil and gas (O&G) deal activity started the year on a low note as it appeared that much of the smaller M&A had already played out

Although we don’t foresee a significant increase in commodity price that could trigger a new wave of deals in the sector, we expect further consolidation to take place, especially in the large and megadeals space. While deal volumes might remain lower, deal value is expected to exceed that of last year due to the impact of the anticipated megadeals. This is particularly true if we consider that a good part of the deals done last year were corporate restructurings, and this year we expect more pure M&A deals.


Trends and highlights

  • Total deal volumes and values were the lowest in years as investors focused on capital discipline, generating returns, and operating within existing cash flows.
  • The upstream space, which typically generates the highest level of deal volume and value, hit record lows, as most of the attractive deal-making in that space seem to have already played out. Although capital remained largely available, there was an evident lack of good projects that can generate immediate cash flows at attractive prices. 
  • The only segment that remained somewhat active was midstream where financial investors drove the activity. 
  • However, we expect megadeals to return in the quarters to come, pushing up the total deal value for 2019.

Contact us

Joe Dunleavy

EU&M Deals Leader, PwC US

Follow us