US oil and gas deals insights: Q3 2017

Steady as she goes

After a strong first half of 2017, Oil & Gas deal-makers remained cautiously optimistic in the third quarter. Although the total deals value decreased, strategic and financial investors remained interested in the sector as evidenced by the higher announced deals volume. While a lot of factors contributing to deal enthusiasm at the beginning of the year, such as a more energy friendly regulatory environment, have started to wear off, there are a number of new factors that we expect to drive activity in 2018. 

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Key trends and highlights

  • Increased deal volumes: there were 53 announced deals in the third quarter, a 6% sequential increase, and 13% yearover-year growth. However, total deal value has fallen substantially: down 36% since last quarter and 58% year-overyear, to $23.61 billion.
  • Strong deal activity in the Permian has pushed prices and valuations, making other, less active basins, such as the Bakken more attractive to investors. 
  • Mega-deals, or deals with value greater than $1 billion, continued the downward slide they began in the first quarter of 2017. The seven mega-deals announced in the third quarter were worth $11.74 billion, the lowest share of total deal value and volume since the second quarter of 2016.


 

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Joe Dunleavy
EU&M Deals Leader
Tel: +1 (713) 356 4034
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