Private Equity investing in oil and gas – Part 4 – Oil and gas news

Private Equity investing in oil and gas – Part 4 – Oil and gas news

Oil PwC, and gas M &
analysis of the quarterly report announced U.S. transactions with a value of more than $ 50 million analyzed by PwC using transaction data of IHS Herold.

For
the three months ended March 31, 2012, had a total of 44 oil and gas deals with values ??of more than $ 50 million, which amounts to $ 34 billion in transaction costs, which are not essentially different from the 45 deals representing $
34.6 billion during the same period last year.
However, there was a
small spike in the first quarter, the average deal size in 2012 $ 773 million $ 768 million in the first quarter of 2011, due to 9 ‘Mega’ deals (deals with values ??of $ 1 billion or more).

On
a sequential basis, the volume of transactions in the first quarter of 2012 decreased from 48 deals in the fourth quarter of 2011, the total value of transactions in the first quarter of this year marked a significant decline compared to $ 80.5 billion in
the previous quarter – 58% reduction Quarter-to-quarter.
Reducing the cost of transactions, according to PwC, can largely be attributed to the depressed price of natural gas.

"Although transaction
activity remained unchanged compared to the year, we begin to see easing the flow of transactions over the past few quarters," said Rick Roberge, head of energy M PwC, and practice.
"In
the last quarter, however, was a turning point for the activities of private capital, and we are seeing an increased appetite for these investors to deploy their dry powder in oil and gas. A 10-year low natural gas prices has attracted PE, as they see the
opportunity to get to the bottom and
take the long view, the price of natural gas. corporations, meanwhile, view the natural gas plays in these prices as a challenge for the industry. And while most of the activity of PE was in the upper sector, we can see the trend of investment growth in the
lower space with face-to-oil refineries, an area that has been very limited activity. "

There were 18 corporate transactions with values ??greater than $ 50 million, with total deal value of $ 15.8
billion. Twenty-six transactions of assets contributed $ 18.2 billion, or 53 percent of the total number of first
The values ??of the transaction block.
Compared
with the first quarter of 2011, it was another seven corporate transactions in the first quarter of this year, although the total value of transactions decreased from $ 17.5 billion, which was created during the first three months of 2011.
The number of active operations was reduced from 34 deals
in the first quarter of 2011, and the average transaction value jumped 40 percent in the first quarter of 2012 to $ 700 million.

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Posted by Ahmed Tariq on May 9 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry