In the past three years, special purpose acquisition companies, or SPACs, have enjoyed a surge in popularity, with a noticeably large proportion targeting the exploration and production, midstream and oilfield service sectors. Though several of these energy-focused SPACs have announced or closed transactions, at the time of this writing, we count 10 energy-focused SPACs with around $2.6 billion in available capital that are still seeking a transaction.

The SPAC structure is popular, but it presents challenges to sellers when they transact with a SPAC. There are several reasons why SPACs have had an increasingly difficult time finding a transaction in the last six months.

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