M&A Activity expected to increase
Posted: Fri Nov 09, 2018 10:21 am
Denbury Resources buys Penn Virginia for $1.7 billion. Chespaeake Energy follows suit, gobbling up another Eagle Ford shale player, WildHorse Resource Development for $3 billion. Canada’s Encana Corp. tops them both, acquiring the Newfield Exploration Co. for $5.5 billion in the beginning of November. Those are three big deals that happened over four days recently, all targeting Houston shale exploration and production companies. And the Houston energy investment banking firm Tudor, Pickering, Holt & Co. said that’s just the “tip of the M&A iceberg.”
Expect more to come in 2019. “Buckle up as the upstream merger train has left the station, and next year will likely be a wild ride,” the firm said while unleashing a torrent of clichés.
The last few years saw a land rush in West Texas’ Permian Basin in what’s become the world’s hottest oil play. This spring saw Permian holdings begin to consolidate under bigger players after nearly all of the top acreage was scooped up. Now, it appears the merger spree is spreading to onshore shale nationwide. Penn Virginia is an Eagle Ford company. WildHorse is focused on the emerging northeastern portion of the Eagle Ford west of College Station. Newfield, of The Woodlands, has a mix of assets, but it’s primary focus is in Oklahoma. “Early this year it was predominantly a Permian play,” said Neal Dingmann, an energy analyst with SunTrust Robinson Humphrey, “and now it seems to be expanded to all of North America.” Dingmann said he expects more corporate combinations in other regions such as North Dakota’s Bakken shale, but dealmakers will still focus on the Permian. It’s just that the Permian won’t hog all of the fun.
More: https://www.mysanantonio.com/business/t ... 374204.php
Expect more to come in 2019. “Buckle up as the upstream merger train has left the station, and next year will likely be a wild ride,” the firm said while unleashing a torrent of clichés.
The last few years saw a land rush in West Texas’ Permian Basin in what’s become the world’s hottest oil play. This spring saw Permian holdings begin to consolidate under bigger players after nearly all of the top acreage was scooped up. Now, it appears the merger spree is spreading to onshore shale nationwide. Penn Virginia is an Eagle Ford company. WildHorse is focused on the emerging northeastern portion of the Eagle Ford west of College Station. Newfield, of The Woodlands, has a mix of assets, but it’s primary focus is in Oklahoma. “Early this year it was predominantly a Permian play,” said Neal Dingmann, an energy analyst with SunTrust Robinson Humphrey, “and now it seems to be expanded to all of North America.” Dingmann said he expects more corporate combinations in other regions such as North Dakota’s Bakken shale, but dealmakers will still focus on the Permian. It’s just that the Permian won’t hog all of the fun.
More: https://www.mysanantonio.com/business/t ... 374204.php