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Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends ? Q4 2012

Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends ? Q4 2012

Table of Contents

Market Study
Published: January 2013
Pages: 74
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 986.84  Buy Now!
Research from: GlobalData
Sector: Oil & Gas

Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends ? Q4 2012

Summary

GlobalData's ?Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends ? Q4 2012? report is an essential source of data and trend analysis on mergers and acquisitions (M&As) and financings in the oil and gas industry. The report provides detailed information on M&As, equity/debt offerings, private equity (PE), venture financing and partnership transactions registered in the oil and gas industry in Q4 2012. The report provides detailed comparative data on the number of deals and their value in the last five quarters segregated into deal types, segments, and geographies. Besides, the report provides information on the top PE, venture capital (VC), and advisory firms in the oil and gas industry.

Data presented in this report is derived from GlobalData?s proprietary in-house Oil and Gas eTrack deals database and primary and secondary research.

Scope

- Analyze market trends for the oil and gas industry in the global arena
- Review of deal trends in upstream, midstream, downstream, and equipment & services segments
- Analysis of M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnerships in the oil and gas industry
- Summary of oil and gas deals globally in the last five quarters
- Information on the top deals that took place in the industry
- Geographies covered include ? North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa
- League Tables of financial advisors in M&A and equity/debt offerings. This includes key advisors such as Morgan Stanley, Credit Suisse, and Goldman Sachs
- Review the financial metrics, such as operating profit ratio, P/E ratio, and EV/EBITDA on mergers and acquisitions

Reasons to buy

- Enhance your decision making capability in a more rapid and time sensitive manner
- Find out the major deal performing segments for investments in your industry
- Evaluate type of companies divesting / acquiring and ways to raise capital in the market
- Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the oil and gas industry
- Identify major private equity/venture capital firms that are providing finance in the oil and gas industry
- Identify growth segments and opportunities in each region within the industry
- Look for key financial advisors where you are planning to raise capital from the market or for acquisitions within the industry
- Identify top deals makers in the oil and gas industry GlobalData's ?Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends ? Q4 2012? report is a reliable source of essential data and analysis on mergers and acquisitions (M&As) and financing in the oil and gas industry. The report provides detailed information on M&As, equity/debt offerings, private equity (PE), venture financing and partnership transactions registered in the oil and gas industry in Q4 2012. The report offers detailed comparative data on the number of deals and deal values in the last five quarters segregated into deal types, segments, and geographies. Besides, the report furnishes information on the top private equity (PE), venture capital (VC), and advisory firms in the oil and gas industry.

GlobalData derived the data presented in this report from proprietary in-house deals database, and through primary and secondary research.

M&A Activity Increased in Oil And Gas Market in Q4 2012

M&As, which include changes in ownership and control of companies (GlobalData does not consider this value as a new investment in the market), in the oil and gas industry registered a substantial increase of 114% in deal value with $99.4 billion in Q4 2012, as compared to $46.3 billion in Q3 2012. The average M&A deal value also registered an increase from $457.2m in Q3 2012 to $801.6m in Q4 2012. The huge increase in deal value in Q4 2012 could be due to some of the high-value deals such as Rosneft?s agreement to acquire TNK-BP in two separate transactions, which include the agreement to acquire 50% stake from AAR Consortium for $28 billion and the remaining 50% stake from BP for $26.8 billion; Freeport-McMoRan?s agreement to acquire Plains Exploration & Production for $6.9 billion and BP?s agreement to acquire 5.7% stake in Rosneft from Rosneftegaz for $4.8 billion. The number of deals also registered a marginal increase of 8% with 193 deals in Q4 2012, as compared to 178 deals in Q3 2012.

M&As in the upstream energy sector accounted for 47% of the total deals and 85% of deal value, with 91 deals worth $84.6 billion in Q3 2012. Of the total deals in upstream energy sector, 60 deals were registered in the conventional segment and 31 were deals registered in the unconventional segment. M&As in the equipment and services sector registered a considerable decrease in deal value from $11.7 billion in Q3 2012 to $6.4 billion in Q4 2012. The number of deals also recorded a decrease to 71 in Q4 2012 from 76 in Q3 2012.

North America recorded the highest deal activity, accounting for 51% of the total deals and 28% of the total deal value with 100 deals worth $28.3 billon in Q3 2012, followed by Europe with 46 deals (constituting 24% of the total M&A deals) worth $64.8 billion (constituting 65% of the total M&A deal values). In North America, upstream energy sector registered 41 deals, of which 23 were registered in the conventional segment and 18 were registered in the unconventional segment.

Asset Transactions Increased in Oil And Gas Industry in Q4 2012

Asset transactions in the oil & gas industry registered an increase of 15% in the number of deals and a substantial increase of 59% in deal value with 310 deals worth $50.2 billion in Q4 2012, as compared to 269 deals worth $31.6 billion in Q3 2012. On a year-on-year basis, deal values increased substantially from $22.4 billion in Q4 2011 to $50.2 billion in Q4 2012. The number of deals also registered a marginal increase of 12% to 310 in Q4 2012 from 277 in Q4 2011.

The upstream energy sector accounted for 79% of the total number of asset transactions and 68% of the deal value with 254 deals worth $35.6 billion in Q4 2012. Of the total, 178 deals worth $24.5 billion were registered in the conventional segment and the remaining 76 deals worth $11.1 billion were registered in the unconventional segment.

North America registered 179 deals, which accounted for 58% of the deals in Q4 2012. Of the total, 112 deals were registered in the US, with 39 deals in the prolific oil and gas zones of Texas, followed by 10 deals in California and nine deals in Colorado.

The average cost ($) of production per barrel of oil equivalent per day (boepd) incurred by companies for the acquired upstream assets/companies registered an increase from $77,802 per boe of daily production in Q3 2012 to $94,844.7 per boe of daily production in Q4 2012. For 1P or proved reserves, the average implied deal value increased from $14.4 in Q3 2012 to $22.8 in Q4 2012, while the average implied deal value for 2P or proved plus probable reserves increased from $9.6 in Q3 2012 to $14.2 in Q4 2012.

ONGC Videsh?s agreement to acquire 8.4% interest in Kashagan field from ConocoPhillips for $5 billion, SapuraKencana Petroleum?s agreement to acquire Seadrill?s Asian Tender Rig business for $2.9 billion, Sheridan Production?s agreement to acquire oil and gas assets in Permian Basin from SandRidge Energy for $2.6 billion and Total?s agreement to sell 20% stake in OML 138 block to Sinopec for $2.5 billion were some of the high value asset transactions recorded in Q4 2012.

New Investments Decreased in Oil and Gas Industry in Q4 2012

New investments in oil and gas companies, including financing through equity offerings, debt offerings, private equity and venture financing, registered a decrease of 7% in the number of deals and a marginal increase in deal value with 412 deals worth $87.1 billion in Q4 2012, as compared to 443 deals worth $86.5 billion in Q3 2012. In total, 31 high-value deals of greater than $1 billion each contributed around $38.5 billion to total deal value in Q4 2012.

The majority of capital raising was carried out through the issuance of debt instruments that accounted for 79% of the investment with $68.5 billion in Q4 2012, followed by equity offerings with $15.4 billion. In terms of the number of deals, equity offerings were at the top, accounting for 54% of the total deals with 224 deals in Q4 2012, followed by debt offering deals with 143 deals.

Rosneft?s $2 billion public offering of bonds; General Electric?s public offering of notes worth $2 billion; KKR and White Deer Energy?s agreement to invest $1.5 billion in Acteon; Williams Companies?s public offering of shares worth $1.4 billion were some of the high-value transactions recorded in Q3 2012.

The upstream energy sector recorded the highest number of deals and deal value with 286 deals in Q4 2012, followed by midstream energy sector with 91 deals. Deal value in upstream sector was around $47.7 billion in Q4 2012, followed closely by midstream sector with around $40 billion. In terms of average deal value, the midstream recorded much higher value with $455.3m in Q4 2012, as compared to average deal value of $168m in the upstream sector.

Capital raising, through the issuance of debt instruments, by companies in Asia-Pacific registered a substantial decrease from $16 billion in Q3 2012 to $5 billion in Q4 2012. Similarly, the companies in Europe also registered a decrease from $29.6 billion in Q3 2012 to $19 billion in Q4 2012.

The raising of capital through equity offerings, including initial public offerings (IPOs), secondary offerings, and private investment in public equities (PIPEs), by companies in North America increased from $10.2 billion in Q3 2012 to $12.8 billion in Q4 2012. The number of deals also recorded an increase from 125 in Q3 2012 to 160 in Q4 2012.

The PE/VC deal value registered a substantial decrease of 60% from $8.2 billion in Q3 2012 to $3.3 billion in Q4 2012. The number of deals also registered a decrease of 51% to 45 deals in Q4 2012 from 91 deals in Q3 2012. The equipment and services sector did not attract much of PE/VC investors, resulting in 59% decrease in investment from $5 billion in Q3 2012 to $2 billion in Q4 2012. The upstream energy sector demonstrated a similar trend, recording a decrease of 61% in deal value with $626m in Q4 2012, as compared to $1.6 billion in Q3 2012.

Deal Activity in North America and Europe Increased in Q4 2012

Deal activity in the North American oil and gas industry registered an increase of 12% in the number of deals and 7% in deal value with 595 deals worth $107.3 billion in Q4 2012, as compared to 531 deals worth $100.8 billion in Q3 2012. The region accounted for 58% of the total asset transactions and 51% of the deal value in the oil and gas industry in Q4 2012, with 179 deals worth $25.7 billion in Q4 2012. Of 179 deals, 144 deals were registered in the upstream energy sector (75 deals in the conventional segment and 69 deals in the unconventional segment). M&As in North America registered an increase from 85 deals in Q3 2012 to 100 deals in Q4 3012. Of the total, 43 deals were registered in the upstream energy sector (23 were registered in the conventional segment and 18 were registered in the unconventional segment).

Deal activity in Europe also increased with 181 deals worth $92.2 billion in Q4 2012, as compared to 166 deals worth $44.7 billion in Q3 2012, signifying an increase of 9% in the number of deals and a substantial increase of 106% in deal values. Asset transactions in Europe registered an increase in number and deal value with 40 deals worth $5.4 billion in Q4 2012, as compared to 35 deals worth $5.3 billion in Q3 2012. Of the total 40 deals, 28 deals were registered in the upstream energy sector (27 in the conventional segment and one in the unconventional segment).

Asia-Pacific registered an increase in the number of deals with 161 in Q4 2012, as compared to 153 in Q3 2012. However, deal value registered a decrease with $21.7 billion in Q4 2012, as compared to $31.5 billion in Q3 2012. The rest of the world, including South and Central America and the Middle East and Africa, recorded an increase in deal value from $10.4 billion in Q3 2012 to $16.2 billion in Q4 2012. However, the number of deals registered a decrease of 24% with 96 in Q4 2012, as compared to 126 in Q3 2012. Of the total, 50 deals were registered in the upstream M&A segment in Q4 2012, with 46 deals recorded in the conventional segment and four in the unconventional segment.

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