Middle East

US oil merger reduced to $ 12 billion as volatility limits trading

US oil and gas transactions fell to $ 12 billion from the first quarter, nearly one-third of $ 34.8 billion in the year-ago quarter, according to released data. This is because fluctuations in commodity prices have caused buyers and sellers to clash over asset values. By energy analysis company Enverus on Thursday.

Andrew Dittmar, Director of Enverus Intelligence Research, said:

The price of the US benchmark crude oil futures CLc1 soared to more than $ 123 a barrel in early March following Russia’s invasion of Ukraine, but then fell as concerns about a recession came to the fore.

However, the highs in the previous quarter prompted interest in M ​​& A from private equity firms, spurring some deals, Dittmer said. Private equity sellers accounted for about 80% of total quarterly trading value, according to Enverus data.

Price resistance

Oil prices this year are rushing among private investors to market real estate across the US shale patch, Dittmer said.

“The challenge is to find buyers who are willing to pay the asking price,” Dittmer added.

The Permian Basin of Western Texas and New Mexico accounted for 46% of trading value in the previous quarter, making it the most active oil and gas region in the United States. According to Enverus data, the Rocky Mountains are 12%, the Central Continent is 6%, the US Gulf Coast is 5%, and the West Coast is 2%. Off the Gulf of Mexico, the eastern United States, and Alaska did not register a transaction.

Approximately one-third of the total transaction value is due to the merger of private Colgate Energy Partners III and Centennial Resource Development.

Other top deals by price in the previous quarter included a $ 1.3 billion agreement to establish Granite Ridge Resources between Gray Rock Investment Partners and Executive Network Partnering Corp.

(Reuters-Report by Laila Kearney of New York, edited by Josie Kao)

https://www.oedigital.com/news/498094-u-s-oil-mergers-drop-to-12-billion-as-volatility-limits-deals US oil merger reduced to $ 12 billion as volatility limits trading

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