Oil and Gas

Upstream oil and gas mergers, capital raising totaled $81 billion in Q3 2018

GlobalData reported almost $81 billion worth of deals in the upstream oil & gas sector in Q3 2018 with a majority performed in the Americas region.
By GlobalData November 14, 2018
GlobalData reported almost $81 billion worth of deals in the upstream oil & gas sector in Q3 2018 with a majority performed in the Americas region. Courtesy: GlobalData, Oil and Gas Intelligence Centre

GlobalData reported a total of 362 deals with a combined value of $80.9 billion were registered in the upstream oil & gas industry in Q3 2018. Of the total value, $44.5 billion was registered in mergers and acquisitions (M&A) in Q3 2018, representing an increase of 77% from the $25.1 billion announced in Q2 2018. On the capital raising front, a total value of $36.5 billion in capital raising was announced in the upstream sector in Q3 2018, which was an increase of 19% announced in the previous quarter.

The report: “Quarterly Upstream M&A and Capital Raising Deals Review – Q3 2018” stated that a total of 111 M&A deals, with a combined value of $13 billion, were recorded in the conventional segment, and 88 deals, with a combined value of $31.5 billion, were recorded in the unconventional segment, in the quarter.

Breakdown analysis between quarters

Of the total M&A deals, 156 deals, with a combined value of $37.5 billion, were domestic acquisitions. The remaining 43 deals, with a combined value of $7 billion, were cross-border transactions. A quarter-on-quarter comparison shows a substantial increase in domestic transaction values in Q3 2018. However, cross-border transaction values decreased by 7% in Q3 2018.

GlobalData reported almost $81 billion worth of deals in the upstream oil & gas sector in Q3 2018 with a majority performed in the Americas region. Courtesy: GlobalData, Oil and Gas Intelligence Centre

GlobalData reported almost $81 billion worth of deals in the upstream oil & gas sector in Q3 2018 with a majority performed in the Americas region. Courtesy: GlobalData, Oil and Gas Intelligence Centre

Capital raising had an increase of 20% in deal value, totaling $32.4 billion in Q3 2018. However, the number of debt offering deals decreased by 10% from Q2 2018. Capital raising, through equity offerings, registered a decrease of 3% in the number of deals and 8% in deal value with 98 deals, with a combined value of $2.4 billion, in Q3 2018, compared with 101 deals, of a combined value of $2.6 billion, in the previous quarter. Eleven private equity/venture capital deals, with a combined value of $1.7 billion, were recorded in Q3 2018. In the previous quarter, 12 deals with a  combined value of $950.3 million were reported.

The Americas remained the frontrunner for M&A and capital raising, registering 132 M&A deals. The EMEA region registered 45 M&A deals and APAC registered 22 M&A deals.

GlobalData

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– Edited from a GlobalData press release by CFE Media.


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