US oil and gas deals insights: Q2 2018

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Q2 deal value highest its been in six quarters

During the second quarter of 2018, commodity prices achieved levels not seen in years.  However, uncertainty related to trade conflicts, tariffs, geopolitical issues and the impact of these factors on commodity prices generally dampened deal activity.  During the quarter energy companies maintained their focus on capital discipline and generating returns for investors, further constraining deal activity.  Against this backdrop, it came as no surprise that in the second quarter of 2018, strategic and financial investors alike remained mostly on the sidelines. 

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Trends and Highlights:

  • Total deal value for the second quarter was the highest second quarter deal value in history, driving average deal value for the second quarter of 2018 to new record highs.
  • The second quarter of 2018 had lower deal volumes, both sequentially (down 46%) and year over year (down 32%), while the total value of the announced deals was significantly higher- 87% sequentially and 106% year over year.
  • This resulted in a mixed first half of the year, with deal values up 6.3% and volumes down 6% relative to the same period last year.
  • The downstream segment had one of the best quarters in history, generating $35.03 billion in deal value, including the largest transaction of 2018.
  • Midstream deals generated a record high second quarter deal value of $35.15 billion. 
  • Energy IPOs- come back, we miss you.


 

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Joe Dunleavy
EU&M Deals Leader, PwC US
Tel: +1 (713) 382 6638
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