US oil & gas industry sees a drop of 50% in deal activity in September 2019

26 October 2019 (Last Updated October 26th, 2019 10:42)

US oil & gas industry sees a drop of 50% in deal activity in September 2019

The US oil & gas industry saw a drop of 50% in overall deal activity during September 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 41 deals worth $9.76bn were announced in September 2019, compared to the 12-month average of 82 deals.

M&A was the leading category in the month in terms of volume with 34 deals which accounted for 82.9% of all deals.

In second place was private equity with four deals, followed by venture financing with three transactions, respectively accounting for 9.8% and 7.3% 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 $9.42bn, while private equity and venture financing deals totalled $342m and $4.89m, respectively.

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

The top five oil & gas industry deals accounted for 85.7% of the overall value during September 2019.

The combined value of the top five oil & gas deals stood at $8.36bn, against the overall value of $9.76bn recorded for the month.

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

1) Energy Transfer’s $5.1bn acquisition of SemGroup

2) The $1.37bn acquisition of Meade Pipeline Co by Nextera Energy Partners

3) Spur Energy Partners’ $925m asset transaction with Concho Resources

4) The $600m acquisition of Hillstone Environmental Partners by NGL Energy Partners

5) NJR Midstream’s acquisition of Leaf River Energy Center for $367.5m.

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.