Many savvy upstream executives claimed last year as their time to launch new E&P ventures, prompted by strong commodity prices and strong investor interest. "To put it simply, new companies are formed when capital embraces top-quality management teams, and 2004 saw its fair share of both," says Mike Bock, a principal at Petrie Parkman & Co. Yorktown, First Reserve, Natural Gas Partners, Quantum Energy Partners, EnCap and Lime Rock raised a total of more than $5 billion in 2004, he says. Donald Warmington of TD Securities points to M&A activity as the foundation for numerous start-ups. He counts more than $24 billion of U.S. M&A deals in 2004 in more than 60 transactions. "The larger companies with access to public capital are purchasing smaller companies, as 'bolt on' acquisitions. This is freeing up proven management teams to get a bigger piece of the pie," he says. Dan Steele, senior vice president of the energy lending group at Sterling Bank in Houston, says he has seen estimates of as much as $80 billion of private-equity capital that is available to E&P companies. Plus, there has been an expansion of available commercial bank debt. -Bertie Taylor
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.