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Market Spotlight: The New World of Energy M&A

Market Spotlight: The New World of Energy M&A

30 March 2017

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Record dealmaking in the energy sector last year amounted to the second-highest total deal volume (1,141) and the third-highest total deal value (US$512.3bn) in history. This activity was due to a wave of consolidations as oil prices hovered around US$50 a barrel. Meanwhile, 437 transactions in the alternative energy space represented more than a third of the sector’s volume. With a solid year for M&A in the energy sector behind us, dealmakers expect that the 2017 market will continue to be just as robust.

In order to gain an understanding of the opportunities and challenges within the energy sector for 2017, Donnelley Financial Solutions commissioned Mergermarket to interview global dealmakers for their insights.

Key findings include:

  • More than 80% of respondents believe energy M&A will either increase significantly (20%) or somewhat (64%) over the coming year.
  • A majority of those surveyed (76%) say that North America will experience the most dealmaking (52%) or the second-most dealmaking (24%) in the energy sector.
  • Respondents see consolidation among oil & gas majors and distressed asset purchases by larger companies as the major drivers of energy M&A this year.
  • Companies in the exploration & production segment will see the most M&A activity in the coming 12 months, according to 60% of dealmakers.

For more energy M&A insights, join Donnelley Financial Solutions at the Energy Forum.