Bill Marko, managing director at Jefferies LLC, sat down with Hart Energy’s Emily Patsy and Jessica Morales to discuss what’s taken place for the oil and gas industry following a historic crash in oil prices plus the collapse in demand due to the COVID-19 pandemic. 

“I’ve been doing this 40 years—I’ve never seen a downturn like this,” Marko said before adding, “It’s going to dramatically and permanently change the business.”

As far as the current state of the A&D market for oil and gas goes, he said: “It’s absolutely dead. The only activity you’ve seen on the A&D business has been deals that were underway and had agreements.

Marko noted that for those lingering transactions, sellers and buyers took a step back to look at the current oil and gas price outlook and ended up recasting deals. Examples of redone deals include the sale of Devon Energy Corp.’s Barnett Shale asset and  BP Plc’s Alaska sale to Hilcorp Energy Co. 

In terms of new deal flow, it’s the same story. “It’s dead and it’s because of the challenge of what will commodity price be in the next three months, in the next year, in the next three years,” he said.

Jump to a topic:

  • Oil market overview (0:40)
  • State of the A&D market (3:05)
  • Permanent change? (5:50)
  • U.S. shale outlook (8:15)
  • Public capital markets (10:15)
  • Private equity investors (13:12)
  • Keys to survival (15:10)