According to the report of the U.S. company Enverus (leader in energy sector data), mergers and acquisitions activity in the oil and natural gas sector in the U.S., along with the price of oil, fell strongly in the first quarter of this year.
The report details less than 1/10 of quarterly activity observed in the sector in the last ten years. Still in accordance with the company, the largest dollar transition made in the first quarter was a $193 million from Alpine Energy Capital to buy alpine energy capital assets Midland Basin from Approach Resources. In the most, the report details the only four other negotiations in the sector.
"Even before the collapse of oil prices in demand issues related to COVID-19 and the increase in global production led by Saudi Arabia, the m&A markets were highly challenged," commented Enverus Senior Mergers and Acquisitions Analyst, Andrew Dittmar, and continued, "Responding to the pressures of Wall Street, E&P reduced spending and refocused on growth to cash flow, decreasing the appetite for acquisitions."ACESSE AS REDES DA PANORAMA OFFSHORE: