Energy Capital Markets Endure Worst Quarter This Decade

Last year ended with the worst quarter for upstream equity issuances since 2010 as only two equity deals raised $67.5 million.

Emily Patsy, Hart Energy
Energy Capital Markets Endure Worst Quarter This Decade

A recent Drillinginfo report found total energy capital offerings last year were down 20% year-over-year driven by the loss of interest by institutional investors in the space. (Source: Shutterstock.com)

U.S. energy capital markets took a hit in 2018 with the upstream oil and gas industry bearing a greater brunt of the decline than any other sector, particularly at the end of the year.

A recent Drillinginfo report found total energy offerings last year were down 20% year-over-year. Combined, bond and equity deals raised $106.8 billion from 201 issuances in 2018 compared to the $133 billion raised from 271 deals in 2017.

During the fourth quarter, the energy sector raised about $20.1 billion through equity and debt offerings, down 4% sequentially and down 34% year-over-year. About $3.9 billion was raised from public stock offerings and $16.2 billion from bond issuances.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.