US oil & gas industry sees a drop of 9.1% in deal activity in October 2020

23 November 2020 (Last Updated November 23rd, 2020 07:30)

US oil & gas industry sees a drop of 9.1% in deal activity in October 2020

The US oil & gas industry saw a drop of 9.1% in overall deal activity during October 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 60 deals worth $25.59bn were announced in October 2020, compared to the 12-month average of 66 deals.

M&A was the leading category in the month in terms of volume with 42 deals which accounted for 70% of all deals.

In second place was venture financing with 15 deals, followed by private equity with three transactions, respectively accounting for 25% and 5% 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 $23.27bn, while private equity and venture financing deals totalled $2.25bn and $74.46m, respectively.

US oil & gas industry deals in October 2020: Top deals

The top five oil & gas industry deals accounted for 95.5% of the overall value during October 2020.

The combined value of the top five oil & gas deals stood at $24.43bn, against the overall value of $25.59bn recorded for the month.

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

1) ConocoPhillips’ $13.34bn acquisition of Concho Resources

2) The $7.6bn acquisition of Parsley Energy by Pioneer Natural Resources

3) Ardian’s $2.25bn private equity deal with ANGUS Chemical

4) The $735m asset transaction with Chevron USA by EQT

5) BHP’s asset transaction with Hess for $505m.

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.