After a slump in the first quarter, M&A activity in the energy sector reached a record high during the second quarter, according to a recent PricewaterhouseCoopers (PwC) report.

“After an exceptionally quiet first quarter, the oil and gas M&A market roared back to life in the second, racking the biggest second-quarter deal numbers since PwC started tracking transactions in 2002,” said Kyle West, a director of deals for PwC, during a July 25 webcast discussing the report.

Whether the third quarter will mirror either prior quarters depends on the outcome of a number of factors such as U.S. monetary policy, tensions in the Strait of Hormuz and weather. Additionally, any significant volatility in cash flow driven by a “sustained decline in commodity prices or an improved sentiment from higher prices is likely to drive more deal activity,” West added noting focus is expected to remain on capital discipline and operating within cash flow.

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