After years of hoping for oil prices to return to better days, the magical thinking by optimistic E&Ps is out, and private-equity firms are poised to pounce.
The JV transaction marks Osaka Gas’ first acquisition in the midstream business in the U.S. following the Japanese company’s purchase of Sabine Oil & Gas late last year.
A brutal downcycle hurts all, but don’t mistake mineral portfolios with struggling E&Ps. The nature of their part of the business means less risk but greater stability in times like these.
Zero- and lightly levered private operators throughout U.S. oil basins are on the lookout to buy—and not just where they operate currently. These five producers—in Wyoming, Oklahoma, Colorado and South Texas—share their plans.
The assets include six intrastate natural gas pipelines spanning approximately 1,400 miles in Alabama, Louisiana and Mississippi. The system has total capacity of more than 800 MMcf/d.
A panel of oil and gas capital experts discussed the steps private equity professionals need to take to recover from the severe downturn.
Bill Marko, managing director at Jefferies, says he sees permanent changes to the U.S. shale business resulting from the destruction to oil demand over the past several months.
An emphasis on relationships backed by operational expertise and experience has helped these two private-equity-backed midstream operators continue to perform.
David Baggett, founder and managing partner of Opportune, says oil and gas companies are focused on short-term survival and lowering costs, which can already be seen by massive capex cuts among producers and the historic plunge in rig counts.