A couple of “mega-deals,” including a $17.2 billion takeover of ONEOK Partners by its parent firm, are part of a record-breaking quarter of M&A transactions that showed total oil and gas deals at the start of 2017 are four times what they were last year during the same time-frame, reports Dave Forest of Oiloprice.com.
A recent report by M&A specialists Dealogic showed that total oil and gas transactions in the first six weeks of the year have already reached $63.3 billion. So far, 98 transactions have been completed through February 13.
Many of the deals have dealt with Permian Basin assets, whose growth in the last few months continues. The area leads other shale basins in rig count, and production there makes Texas oil continue to stand out on the map. And all of this with oil still below $60. Forest states:
The amazing thing is, all this is happening at relatively low energy prices, with oil continuing to languish around $50. But the fact that prices have at least been stable for several months is giving acquirers confidence to make longer-term assessments about asset value, and jump on opportunities they see in the “new normal” oilpatch.
Forest anticipates that we’ll continue to see more M&A deals as the year wears on. Read Forest’s entire article at Oilprice.com.