Terrence M. Pegula joins other NFL owners, most notably Dallas Cowboys owner Jerry Jones, in making large new investments during a stagnant time for the oil and gas industry.
Devon Energy’s Barnett Shale exit, a deal potentially worth up to $830 million, will now close at the beginning of October rather than the end of the year.
Tokyo Gas will pay about $620 million as it increases its ownership in Castleton Resources, a U.S. shale gas operator focused on being a consolidator of E&P assets in the Ark-La-Tex region.
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.
Years of M&A since the last downturn have produced suboptimal returns, which may lead oil and gas majors to focus on asset-level deals.
As oil and gas companies face a hard-scrabble commodity price environment, E&Ps and participants in other industry sectors are already rushing to restructuring advisers in hopes of staving off cash flow calamities, unpaid debts and bankruptcies.
Negative oil futures aren’t the only drag on deals. History, replete with examples of how to deal with bad times, is being made right now.
Locked up in an MLP bankruptcy for nearly two years, Maverick Natural Resources has new management and a business model aimed at the relentless pursuit of free cash flow.
Diversified Gas & Oil’s EQT bolt-on, and an earlier deal with Carbon Energy, add upstream and midstream Appalachia assets primarily in West Virginia and Pennsylvania.
First-quarter M&A grinded out a mere $770 million in deals—about one-tenth of typical values—as oil and gas companies drowned in oversupply, according to an April report.
