PwC US: Eagle Ford, Marcellus most active shale plays for 2Q M&A

Transactions involving unconventional oil and gas assets remained a key driver for deal activity in the second quarter, and midstream shale assets values beat upstream shale deal total for a second consecutive quarter, PwC reported in an analysis of industry’s merger and acquisition activity.

In a report released Aug. 6, PwC said transactions greater than $50 million included 15 shale deals worth $7.5 billion, or 44% of total second-quarter deal value. Upstream shale deals represented nine transactions and accounted for $3.1 billion, while six midstream shale deals contributed $4.4 billion.

Buyers are focused on enhancing infrastructure capacity so demand remains strong for gathering assets, Doug Meier, US energy transactions and deals leader for PwC, told Oil & Gas Journal. The analysis excluded pipeline construction projects.

“Well-positioned buyers have the right deal strategies, integration plans, and controls in place to execute quickly on opportunities while successful sellers are providing a clearer and more transparent picture of their assets in order to minimize transaction timing,” Meier said.

The most active shale plays for M&A with values greater than $50 million during this year’s second quarter included the Eagle Ford in South Texas with three transactions contributing $1.5 billion total, the Marcellus with three deals totaling $416 million, and the Bakken formation in North Dakota with two deals totaling $910 million.

The Utica shale experienced no deal activity for the first time in 7 quarters, PwC said, noting that was not a significant change from the play’s historical trend. For transactions worth more than $50 million, the play has averaged one deal during the last 6 quarters, including the 2013 second quarter. Two deals were announced during this year’s first quarter.

PwC noted master limited partnerships (MLPs) were involved in seven oil and gas transactions, representing 18% of deal activity for overall second-quarter 2013 US oil and gas transactions. Additionally, in the first half of the year, MLPs participated in 17 deals, or 21% of total deal activity.

MLPs help satisfy certain investors’ thirst for yield, said PwC, which expects accelerating deal activity in by upstream MLPs because these companies wish to supplement depleting assets.

Foreign buyers accounted for no announced deals worth more than $50 million during the second quarter, which was a significant change from previous quarters. Four announced shale deals involved foreign acquirers during the first quarter, PwC said.

“Strategically, foreign buyers remain interested in US oil and gas assets,” Meier said, adding he expects buyers from outside the US will continue to be active players in US oil and gas.

PwC’s M&A analysis is a quarterly report of announced US transactions with value greater than $50 million analyzed by PwC researchers using transaction data from IHS Herold.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

EPA won’t finalize RFS’s 2014 biofuel quotas before yearend

11/21/2014 The US Environmental Protection Agency announced it will not finalize 2014 biofuel quotas under the federal Renewable Fuel Standard (RFS) before ye...

MARKET WATCH: NYMEX crude up on recovering Chinese oil demand

11/21/2014

Oil prices bounced back up $1/bbl on the New York market Nov. 20 on indications that Chinese oil demand might be recovering.

Worker killed in platform explosion offshore Louisiana

11/21/2014 An explosion that occurred on Nov. 20 at the Fieldwood Energy LLC-operated West Delta 105 E offshore platform, also known as Echo, in the Gulf of M...

Total joins global climate initiatives

11/20/2014 Total SA, in what it describes as a consolidation of its efforts to address climate change, will support initiatives of the United Nations Global C...

IHS: ‘Tight-oil test’ under way in US amid lower oil prices

11/20/2014 The vast majority of potential US tight-oil production growth remains economical in the current crude oil price environment, according to a recent ...

Apache to sell Louisiana, Anadarko assets for $1.4 billion

11/20/2014 Houston independent Apache Corp. has agreed to sell noncore southern Louisiana and certain Anadarko basin assets in two separate deals for a combin...

AFPM: Oregon’s proposed low-carbon fuel standard unconstitutional

11/20/2014 Oregon’s proposed low-carbon fuel standards (LCFS) program is unconstitutional, the American Fuel & Petrochemical Manufacturers said in comment...

MARKET WATCH: Crude oil futures prices rangebound

11/20/2014 US light, sweet crude oil prices remained below $75/bbl Nov. 19 on the New York market, while analysts and traders focused on the upcoming meeting ...

Bids spike in Northern Alaska lease sales

11/19/2014 Alaska’s Division of Oil & Gas received 356 bids on 298 tracts in its 2014 Northern Alaska area-wide lease sales, trumping the 92 bids received...

White Papers

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Increase Equipment Uptime Through Robust Enterprise Asset Management

Whether you operate in the Upstream Drilling and Exploration sector, the Midstream distribution sector...
Sponsored by

Continuous Improvement for Maintenance with Robust Reporting and Analytics

You should have real-time, anywhere access to more relevant and comprehensive data to help manage and ...
Sponsored by

Enterprise Asset Management Solution for Movable Assets in the Oil & Gas Industry

Drilling and exploration companies face several challenges in effectively managing assets both offshor...
Sponsored by

Supporting HSE Needs for Oil & Gas Through Effective Asset Management Practices

The Oil & Gas industry is constantly being challenged to find, extract and deliver cheaper an...
Sponsored by

Sesam for subsea design analysis

With the exponential growth in the subsea sector, a new set of challenges now face the industry. Mostl...
Sponsored by

Is the gas delivery system you’re looking at able to meet your power generation needs: a hydraulic engineer’s perspective

The hydraulic characteristics, and system response to demands and supplies, of natural gas pipelines a...
Sponsored by

Available Webcasts



Optimizing your asset management practices to mitigate the effects of a down market

When Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST



On Demand

Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected