We continue our interview series with Justin T. Stolte, partner at Gibson, Dunn & Crutcher LLP. Part two picks up by looking at what deals are getting done.
We have established the M&A transactions market is challenged but there are still deals happening. Stolte looks at what deals are proving to be beneficial for companies at this time.
"Water historically has been viewed as a nuisance for E&P companies and now, because there is so much produced water that E&Ps are having to deal with, it's really created a stand-alone business," said Stolte.
Related video: VIDEO SERIES: Challenges Ahead For M&A Transactions Market
Denbury Resources and Penn Virginia mutually agreed to terminate their merger after the $1.7 billion cash-and-stock transaction faced difficult market conditions and shareholder opposition.
The acquisition of Jagged Peak will more than double Parsley Energy’s position in the Delaware Basin, where the companies expect to generate G&A savings of about $25 million within the first year.
Callon Petroleum and Carrizo Oil & Gas said Dec. 20 that shareholders from both companies voted to approve its pending merger, which had initially faced shareholder opposition.