Oil and gas M&A activity surges in 2nd quarter
By contrast, eight deals valued at $1.2 billion were done during the second quarter of last year, said Rowena Cipriano-Reyes, a Denver-based partner with PwC’s energy practice.
“The increase in activity and value were primarily driven by companies focusing on oil deals to take advantage of the strong economics in oil vs. natural gas, where prices continued to contract,” Cipriano-Reyes said.
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Oil and gas development in the Niobrara formation in the Denver-Julesburg Basin and the Bakken formation in North Dakota contributed to the activity, she said.
“A wide range of energy exploration and production companies are acquiring or leasing sizeable amounts of acreage in Colorado and North Dakota and capitalizing on advanced drilling methods to obtain oil reserves,” Cipriano-Reyes said.
The Rocky Mountain energy market remains a bright spot and should remain active as companies seek to establish footholds in the area, she said.
The largest deal in the second quarter was the $1.3 billion acquisition of a share in Chesapeake Energy Corp.’s Niobrara assets by Chinese oil company Cnooc Ltd.
By contrast, eight deals valued at $1.2 billion were done during the second quarter of last year, said Rowena Cipriano-Reyes, a Denver-based partner with PwC’s energy practice.
“The increase in activity and value were primarily driven by companies focusing on oil deals to take advantage of the strong economics in oil vs. natural gas, where prices…
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