The Dallas Fed might seem an unlikely source of unfiltered, explicit color commentary about the oil and gas industry. In fact, that’s what Twitter is for. But unidentified executives at 156 oil and gas firms, surveyed by the Dallas Fed in September, responded with a sense of maturity and insight while collectively bellowing, “ya basic!” at a variety of institutions, entities and each other.
Meanwhile, Aramco’s IPO is a classic elephant-in-a-matchbox scenario. Investors swept up in the awe of the world’s largest land IPO aren’t looking for greatness in matchbox-sized E&Ps. Why? Because of stats like these: In the past five years, U.S. energy companies have led all other industries in defaults, according to RapidRatings, a financial analytics company.
Yet E&Ps with assets in hand remain radioactive. In the coming year, public companies may face a better chance of being acquired and taken private, if a mini-trend continues to develop from 2019.