During the past five years, the oil and gas deals market has reflected the energy industry’s confidence, with rising transaction value and volume. US exploration and production (E&P) companies have grown rapidly through both acquisitions and the drill bit, focused in particular on unconventional plays in the US, resulting in a robust inventory for both asset and corporate transactions.
The oil and gas transaction market ended 2014 with a tapering off in deal volume, impacted by the late 2014 collapse in oil prices. Subsequently, falling upstream earnings have now put the brakes on expansion plans and led to capital spending cuts across the industry. Facing such market uncertainty, energy companies have been re-evaluating their asset portfolio and adjusting their acquisitions and divestitures (A&D) strategies by loading up their war chests and waiting for a possible market rebound.