Oil & Gas Mergers and Acquisitions - Midyear 2011 Report
Playing the long game, focus on the future
Looking forward to the next twelve months, we expect energy prices to strengthen and deal activity to trend positive, driven by robust global energy demand from non-OECD countries.
- The falloff of M&A activity during the first half of 2011 was concentrated in the months of May and June and stemmed from a decline in deal count and transaction value in the upstream segment, but we expect this weakness to prove temporary.
- Investors continue to be attracted to the long-term potential of North American unconventional natural gas assets, despite continued relative weakness in natural gas prices. Midstream deal activity picked up, also fueled by investor interest in gas gathering and processing operations serving unconventional exploration and production activities. The credit markets continue to be accommodating to deals, helping fuel M&A activity.
- The outlook for deal activity to revolve around exploration and production of unconventional and deepwater assets favors investors with resources and long-term time horizons.
To learn what M&A is saying about the business now and in the future, Deloitte has prepared the 2011 Midyear Report, Oil & Gas Mergers and Acquisitions Playing the long game, focus on the future which covers deals from the past six months by subsector, this report reveals the insights of Deloitte M&A leaders on what is driving deals, and what this says about how the business is changing.
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