OGI April

Oil and Gas Investor Magazine - April 2020

E&P consolidators learn to shine amidst M&A storm clouds.

In a market environment where buyers and sellers are at odds over price and the public market is openly hostile to deals, E&P shoppers may sit out an uncertain 2020, writes Oil and Gas Investor's senior editor Darren Barbee. The fourth quarter of 2019 ended with a clunk for asset deals, but investors lit a signal fire for future mergers: when in doubt, underpay. The largest deals centered on corporate consolidations as asset transactions dwindled. Advisers expect the remainder of 2020 to tick by in the same fashion and caution that it’s time to learn to live with uncertainty.

Also in this issue:

  • Fresh off of a $2.27 billion merger with Jagged Peak Energy, Permian producer Parsley Energy is raising its profile on Wall Street—and raising awareness of ESG issues. 
  • Increasingly, E&P mergers are drawing shareholder pushback— unless for a low or no premium. 
  • Amidst a volatile price environment and depressed share valuations, the prospect for oilfield service consolidation remains murky. But one thing is certain— it needs to happen.
  • Trends in U.S. Land Prices: This play-by-play takes a deep look into pricing trends across six key basin areas, including the two most active gas plays and the Gulf of Mexico. 

Cover Story

Oil and Gas Dealmaking Outlook: M&A Gone Mild

In a market environment where buyers and sellers are at odds over price and the public market is openly hostile to deals, E&P shoppers may sit out an uncertain 2020.

Feature

Consolidation Musings: E&P M&A Fantasies

E&P analysts weigh in on what makes a dream combo and whether the oil and gas majors will play.

E&P A&D Playbook: Trends in US Land Prices

This play-by-play takes a deep look into pricing trends across six key oil and gas basin areas, including the two most active gas plays and the U.S. Gulf of Mexico.

E&P Merger Analysis: Do M&A Synergies Materialize?

There’s a debate on the degree of synergies realized in M&A between oil and gas companies. Commodity volatility hasn’t helped.

Executive Q&A: Parsley Energy Paves the Way

Fresh off of a $2.27 billion merger with Jagged Peak Energy, Permian producer Parsley Energy is raising its profile on Wall Street—and raising awareness of ESG issues. Is it the new model for independent producers?

Getting the Deal Done: E&P M&A’ing with Cross Punches

Increasingly, E&P mergers are drawing shareholder pushback—unless for a low or no premium.

Midstream M&A: Purchasers Prefer Pipes

Private-equity acquirers boosted midstream transactions to the fore last year, but has that till been depleted? An active midstream M&A climate looks to continue in 2020, say pundits, with water-related deals most attractive.

Oilfield Service M&A: Service Sector Reshuffle

Amidst a volatile price environment and depressed share valuations, the prospect for oilfield service consolidation remains murky. But one thing is certain—it needs to happen.

Tribute: Goodbye to Claytie

Wildcatter Clayton W. Williams Jr. was larger than life, with a quick wit, a big vision and a bigger legacy.

Water Midstream Transactions: There’s Floodin’ Down In Texas

The relationship between water management companies and producers is being shaped by the recent surge of water infrastructure transactions.

A&D Trends

A&D Trends: Oil Industry Money Trouble

Lately, M&A is a mess. Oil and gas market dysfunction swirls as buyers hunt for PDP assets with discounts of PV-20 or higher on their minds.

At Closing

OGI at Closing: Hit the Reset Button

The current price rout should force every oil and gas company to reset its 2020 plans. This year, stick to your core business but adjust your strategy.

E&P Momentum

E&P Momentum: As Goes Exxon Mobil, So Goes the Permian

Exxon Mobil Corp. has made major strategic moves to gain a significant position in the Permian Basin. The market awaits the results. 

From the Editor-in-Chief

From OGI Editor-in-Chief: Emergency Response to ‘OPEC-aggedon’

When the three-year Saudi Arabia-Russia production-cut marriage known as OPEC+ ended acrimoniously on March 6, the oil and gas world as we know it ended. For now.

On the Money

On the Money: Crude and E&P Credit Get Ugly

Brace yourself for another ongoing market share war in the oil and gas sector.