Oil and Gas M&A Set to Rebound After Slow Start

Worries over the U.S. economic outlook and geopolitical unrest, particularly the Russian-Ukrainian war, slowed oil and gas deal activity in the first half of 2022, PwC said.

Oil and Gas M&A Set to Rebound after Slow Start

While investors remain cautious about oil and gas, the likelihood that prices will remain above $100/bbl for much of the year may generate more activity, PwC said in its mid-year outlook. (Source: Hart Energy, Shutterstock.com)

M&A continued to plow through a 2022 market wary of war, inflation and a potential recession, with the second quarter producing at least $6.7 billion worth of announced deals—with another $3 billion already announced in June, according to Hart Energy data.

Underscoring transactions were consistently high oil and natural gas prices that may be changing the outlook on the energy transition, at least in the short term.

In PwC’s June 23 deals mid-year outlook, the accounting firm said it expected energy transactions to accelerate in the second half of the year as buyers gain confidence in sustained higher energy prices. Date supplied by the firm showed a $14 billion plunge in the first quarter compared with the same time last year, amid market uncertainties.

But the market has now developed a few wrinkles, PwC said.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.