US oil & gas industry sees a drop of 34.9% in deal activity in July 2019

21 August 2019 (Last Updated August 21st, 2019 15:08)

US oil & gas industry sees a drop of 34.9% in deal activity in July 2019

The US oil & gas industry saw a drop of 34.9% in overall deal activity during July 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 54 deals worth $11.4bn were announced in July 2019, compared to the 12-month average of 83 deals.

M&A was the leading category in the month in terms of volume with 44 deals which accounted for 81.5% of all deals.

In second place was venture financing with six deals, followed by private equity with four transactions, respectively accounting for 11.1% and 7.4% of overall deal activity in the country’s oil & gas industry during the month.

In terms of value of deals, M&A was the leading deal category in the US oil & gas industry with total deals worth $9.89bn, while private equity and venture financing deals totalled $1.46bn and $49.3m, respectively.

US oil & gas industry deals in July 2019: Top deals

The top five oil & gas industry deals accounted for 76.5% of the overall value during July 2019.

The combined value of the top five oil & gas deals stood at $8.72bn, against the overall value of $11.4bn recorded for the month.

The top five oil & gas industry deals of July 2019 tracked by GlobalData were:

1) Callon Petroleum’s $4.92bn acquisition of Carrizo Oil & Gas

2) The $1.28bn acquisition of Columbia Midstream Group by UGI

3) Kayne Private Energy Income Fund and Warburg Pincus’ $1bn private equity deal with WildFire Energy I

4) The $824m acquisition of Omnova Solutions by Synthomer

5) Viper Energy Partners’ acquisition of Diamondback Energy for $700m.

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.