Substantial Rise Seen in O&G Mergers, Acquisitions in 2Q

Of the 15 second quarter deals involving a foreign investor, 11 were upstream transactions, Meier told Rigzone. These 11 transactions represented 33 percent of the total volume of upstream transactions in the second quarter.

“Foreign investor activity was focused principally in shale plays with the Eagle Ford being the most active from a transaction perspective in the second quarter. Five of the upstream transactions involved the seller divesting 10 percent of their interest in the assets. Canadian enterprises were involved in seven of the 15 transactions.”

M&A transactions involving shale plays remained a focus for oil and gas companies in this year’s second quarter, particularly the Eagle Ford play in South Texas and the Niobrara and Permian plays.

In the second quarter, overall shale deal value jumped substantially, reaching $20 billion, compared to $4.4 billion in the first quarter of 2014 and $7.7 billion during the second quarter of 2013, said John Brady, a Houston-based partner in PwC’s energy practice, in a July 30 press statement.

“The continued interest in shale plays is a testament to how companies and investors view the success of the unconventional landscape, especially as new technologies and methods come to fruition that increase speed and efficiency from the upstream and drilling process to transportation and bringing oil and gas to market,” Brady commented.

Six deals valued at $6.9 billion were reported for the Eagle Ford; three deals each were reported for the Niobrara and Permian, valued at $432 million and $1.1 billion respectively. Two deals valued at $2.9 billion were reported for the Marcellus shale play, while one deal each for the Bakken and Utica were recorded.

Gulf of Mexico deal activity for the second quarter of this year totaled two deals valued at $251 million, down from five deals valued at $4 billion recorded in this year’s first quarter, PwC noted. Meier said he expects transaction levels for the Gulf to remain near historical levels.