[Editor's note: A version of this story appears in the July 2018 edition of Oil and Gas Investor. Subscribe to the magazine here.]

As public energy equities have become more demanding—some say “persnickety”—it has fallen to the private sector to provide both growing capital needs and a wider range of options for private capital to gain liquidity. Gone are the days when private equity (PE) could rely on a quick cash sale to a public E&P looking for growth, or a partial sale to public investors via an IPO.

Issuance of equity for acquisitions has dropped off dramatically as many public E&Ps adhere to the new-found discipline of spending within cash flow. Exceptions may be made in instances where “bolt-on” acquisitions achieve economies of scale and are clearly accretive. If not, public equity markets have a habit of increasingly penalizing public E&Ps that come to capital markets for funding.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access