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3Q 2018 A&D / M&A Review
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US M&A Roars Back with Record Quarter: $31 Billion in Transactions
This is up 300+% from the Q2 2018 where we saw a measly $7 billion in transactions.
- The Top 3 deals accounted for $21 of the $31 billion in total deal flow for the quarter.
- Private Equity has taken a break from the red hot Permian and are focusing instead on natural gas assets again.
Highlights:
- Fayetteville is back: The play saw two deals totaling $2.3 billion. The two buyers are backed by private capital.
- BP acquired BHP's Eagle Ford, Permian and Haynesville assets for $10.5 billion
- Diamondback Energy agreed to acquire Energen for $9.5B. This development came almost immediately after Diamondback said it would bolt-on Ajax Resources' assets for $1.2 billion.
- Chesapeake unloaded its entire Utica position to Encino and Canada Pension Plan Investment Board (CPPIB)
- Southwestern Energy sold its Fayetteville position to private equity-backed Flywheel Energy
Public vs Private?
Public companies accounted for 78% of the total deal value and private companies 22%. Of that, 20% were private equity-backed companies. The acquisition of long-life natural gas assets dominated private equity purchases.
The Fayetteville saw a major comeback: the play has not seen any A&D since May of 2012. This quarter, Merit and Flywheel agreed to spend $2.3 billion to acquire assets from BHP and Southwestern Energy.
Top 10 US E&P Deals - YTD 2018
US E&P Activity
Private Equity
Shale Experts Premium Private Equity Database lists 128 companies operating in the Permian, including 69 that have received a total of $13.9 billion.
- PennEnergy bid $600 million for bankrupt Rex Energy assets.
- Flywheel agreed to acquire Southwestern Energy assets for $1.9 billion.
- Rebellion Energy acquired Powder River Basin assets for $100 million.
More private equity activity...
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