Private Equity investing in oil and gas – Part 3 – Oil and gas news
Tuesday, May 8th, 2012 5:36:15 by Ahmed Tariq
Private Equity investing in oil and gas – Part 3 – Oil and gas news
According to PwC, there were
13 transactions with a value exceeding $ 50 million related to the shale plays in the first quarter of 2012, total $ 8.4 billion, or 28 percent of the total value of the transaction.
The following transactions shale sector represented 33 percent
of the total value of deals up in first quarter of 2012, is 9 transactions totaling $ 5.3 billion.
In each of the shale-related deals in the
first quarter of 2012 there were two transactions related to Marcellus Shale totaling 2.9 billion and a Utica Shale deal, which totaled $ 112 million.
"Natural gas prices
impact on oil shale M & A, the total cost of transactions down by about 22 percent compared to the first quarter of 2011," said Steve Haffner, Pittsburgh, a partner with the energy practice of PwC.
"Companies
with interests in the Marcellus Shale are focused on maximizing the impact of earlier transactions and management of current operations and cash flows in light of the decline in gas prices. We expect M & A activity will slow in the region during the remainder
of year, as players expect an improvement in natural gas prices.’s wait
and see "approach also affects the activity and in other plays, like Utica shale Shale».
For transactions
valued at more than $ 50 million, foreign buyers have announced five transactions in the first quarter of 2012, which amounted to $ 4.3 billion over six deals worth $ 8.0 billion over the same period last year.
"International
players are still investing in the main path through joint ventures in the U.S. shale as they are attracted to a stable economic and political environment of the country and getting technology in shale resource plays. We believe that the interest from foreign
buyers remain throughout 2012" Roberge
said. "Another development that we believe will continue to receive increased attention is the increase in permits for drilling in the Gulf of Mexico last year, companies wishing to receive the impact of traditional energy sources closer to the Gulf of opportunities
-. Although M & A activity has been slow to return to the region, the
fact that the resolution is on the rise is a testament to the fact that in the Persian Gulf back in business. "
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Posted by Ahmed Tariq
on May 8 2012. Filed under Sci-Tech.
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