GlobalData’s latest report, ‘Quarterly Midstream M&A Deals Review – Q4 2018’, has identified a combined value of US$38.7 billion in mergers and acquisitions (M&A) over the period.

Oil and gas M&A 2018

This was a 59% decrease from the US$94 billion in M&A deals announced in the previous quarter.

A year-on-year comparison shows a decrease of 30% in the number of deals and an enormous increase in values in Q4 2018, compared to 101 deals with a combined value of US$13 billion in Q4 2017. During the quarter, there were 24 M&A deals with values greater than US$100 million, together accounting for US$38.1 billion.

EnLink Midstream’s (ENLC) definitive agreement to acquire the remaining 78.3% interest in EnLink Midstream Partners (ENLK) was the top deal registered in Q4 2018. The transaction is estimated to have an enterprise value of approximately US$8.62 billion and an equity value of approximately US$5.06 billion.

Under the terms, ENLK common unit-holders will receive 1.15 ENLC units for each outstanding ENLK common unit, representing a value of US$18.46 per ENLK unit, based on the closing price of ENLC on 19 October 2018. The offer represents a premium of 3.5% based on the volume weighted average price for both ENLK and ENLC securities over the last 30 trading days.

Citigroup Inc is acting as a financial adviser, while Baker Botts LLP is acting as legal adviser to ENLC. Gibson, Dunn & Crutcher LLP is acting as legal adviser to ENLK. The transaction will enable ENLC to have a streamlined structure that further strengthens its ability to achieve greater returns on the capital.

Midstream M&A deal value and count, Q4 2018

Source: Deals Analytics, GlobalData Oil and Gas