Uncertainty and corporate distress create opportunities for companies with the appetite and capacity to take advantage. Weak oil prices through 2015 (Wood Mackenzie expects Brent to average US$73.80/bbl), will ratchet up the pressure on a financially stretched sector. Expect to see falling deal valuations and the emergence of a true buyers’ market. Large scale corporate consolidation may be closer than it has been at any point since the late 1990s.
Table of contents
What happened last time?
Emergence of a buyers’ market?
Corporate consolidation looms
The Majors are weighing up opportunistic consolidation
The NOCs are primed to take advantage
Tables and charts
This report includes 3 images and tables including:
Deal count vs. Brent forward month (US$/bbl) vs. ILTOP (US$/bbl)
Average Brent price required through 2015 to maintain current net debt (US$/bbl, NPV10)
Implied long-term Brent price in current market valuations (US$/bbl, NPV10)