North America’s oil & gas industry sees a drop of 42.7% in deal activity in Q2 2020

27 July 2020 (Last Updated July 27th, 2020 13:29)

North America’s oil & gas industry sees a drop of 42.7% in deal activity in Q2 2020

North America’s oil & gas industry saw a drop of 42.7% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 161 deals worth $11.04bn were announced for the region during Q2 2020, against the last four-quarter average of 281 deals.

Of all the deal types, M&A saw most activity in Q2 2020 with 105, representing a 65.2% share for the region.

In second place was venture financing with 46 deals, followed by private equity deals with ten transactions, respectively capturing a 28.6% and 6.2% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in North America’s oil & gas industry with $7.31bn, while private equity and venture financing deals totalled $2.81bn and $920.77m, respectively.

North America oil & gas industry deals in Q2 2020: Top deals

The top five oil & gas deals accounted for 73.3% of the overall value during Q2 2020.

The combined value of the top five oil & gas deals stood at $8.09bn, against the overall value of $11.04bn recorded for the quarter.

The top five oil & gas industry deals of Q2 2020 tracked by GlobalData were:

1) Ineos Group’s $5bn asset transaction with BP

2) The $1.4bn private equity deal with CenterPoint Energy by Bluescape Energy Partners, Elliott Management and Fidelity Management & Research

3) Apollo Global Management, Double Eagle Energy Holdings, FourPoint Energy, Magnetar Capital and Quantum Energy Partners’ $750m private equity deal with DoublePoint Energy

4) The $541m asset transaction with Royal Dutch Shell by National Fuel Gas

5) TPG Sixth Street Partners’ acquisition of Antero Resources for $402m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.