GlobalData’s latest report, ‘Monthly Upstream Capital Raising Review – December 2017’, shows that global raising activity in the upstream sector totalled $6.9bn in December 2017. This was a decrease of 57% from the $16.1bn in capital raising deals announced in the previous month. On the volume front, the number of capital deals decreased by 30% from 67% in November 2017 to 47% in December 2017.
A year-on-year comparison shows a significant decrease of 53% in deal value in December 2017, when compared to December 2016’s value of $14.6bn. The month recorded 14 capital raising deals with values greater than $100m, together accounting for $6.6bn.
Capital raising, through debt offerings, witnessed a substantial decrease in deal value, recording $4.1bn in December 2017, compared with $14.3bn in November 2017. Capital raising, through equity offerings, registered a 59% decrease in deal value, with $750.3m in December 2017, compared with $1.8bn in November 2017. Five private equity/venture capital deals, with a combined value of $2bn, were recorded in December 2017.
Whiting Petroleum’s private placement of 6.625% senior notes, due January 15, 2026, for gross proceeds of $1bn, was one of the top deals registered in December 2017. The company received net proceeds of approximately $987.5m. The notes are priced at par to yield 6.625% at maturity. Interest on the notes is payable semi-annually on January 15 and July 15 of each year, beginning on July 15, 2018.
Upstream Capital Raising Deal Value and Count, December 2017
Source: Oil & Gas Deals Analytics © GlobalData
Regionally, Americas led the global capital raising market in terms of volume and deal value, with 28 deals worth a combined value of $5.2bn, in December 2017. The Europe Middle East and Africa (EMEA) registered 11 deals, of a combined value of $1.4bn; while Asia-Pacific recorded eight deals, with a combined value of $207.8m in December 2017.