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24 Pages

Global upstream M&A: half-year review 2016


Global upstream M&A: half-year review 2016

Report summary

Rallied by a resurgent asset market in May and June, deal count was up by nearly a third year-on-year, albeit still well down on the five-year average. Spend of US$41 billion was well down on H1 2015, but up by more than half when excluding Shell-BG. Asset deal activity was strong, though corporate deals fell to a multi-year low.

The period finished with June delivering the highest deal count since July 2014. But a note of caution is required: twelve months ago, in our H1 2015 review, we discussed the same optimism that appeared to be returning to the market. But the oil price slid, confidence evaporated and M&A activity growth faltered.

What's included?

This report includes 2 file(s)

  • Global upstream M&A: half year review 2016 PDF - 723.54 KB 24 Pages, 3 Tables, 29 Figures
  • Global MandA Half Year Review 2016.xls XLS - 1.10 MB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Deal activity showing signs of recovery following sluggish start
  • Global market ILTOP drops to low US$70s per barrel
  • Deal Pipeline swelled by would-be acquirers
  • Corporate activity
    • Majors
    • Independents
    • NOCs
    • Private equity
  • Regional review and outlook
    • North America
      • Tight oil
      • Unconventional gas
      • Heavy Oil
      • Gulf of Mexico
    • Rest of the World
      • Africa
        • Africa Deal Pipeline entries added/updated in H1 2016
      • Asia Pacific
        • Asia Pacific Deal Pipeline entries added/updated in H1 2016
      • Europe
        • Europe Deal Pipeline entries added/updated in H1 2016
      • Latin America
        • Latin America Deal Pipeline entries added/updated in H1 2016
      • Middle East
        • Middle East Deal Pipeline entries added/updated in H1 2016
      • Russia and Caspian
        • Russia and Caspian Deal Pipeline entries added/updated in H1 2016
        • Appendix 1 – additional charts and tables

In this report there are 32 tables or charts, including:

  • Deal activity showing signs of recovery following sluggish start
    • H1 2016 deals
    • Global upstream M&A: half-year review 2016: Image 2
    • Global upstream M&A: half-year review 2016: Image 3
  • Global market ILTOP drops to low US$70s per barrel
    • Implied Long-Term Oil Price (deal by deal) vs. Brent oil price
    • Global M&A spend vs. Brent Prices
    • N. America gas M&A spend vs. HH gas prices
  • Deal Pipeline swelled by would-be acquirers
    • Deals in Pipeline by region/resource
    • Deals in Pipeline by disposals / acquisitions
  • Corporate activity
    • Net M&A spend – Majors
    • Net M&A spend – Independents
    • Net M&A spend – NOCS (domestic and overseas)
    • Overseas acquisitions - NOCs by NOC origin
  • Regional review and outlook
    • H1 2016 deal count compared to historical benchmarks
    • H1 2016 disclosed consideration (US$ million, adjusted) compare to historical benchmarks
    • Deal count split by North America / ROW
    • Disclosed spend* split by North America / ROW
    • North America deal spend by peer group
    • M&A Spend – N.A. tight Oil to end June 2016
    • M&A Spend – N.A. uncon gas to end of June 2016
    • Deal count by region ex-North America
    • Global upstream M&A: half-year review 2016: Image 21
    • Peer groups as covered in Wood Mackenzie's Corporate Service (Independents – Mid and Large Caps):
    • M&A Half Year
    • US$400 million transactions H1 2016
    • M&A spend by region
    • M&A spend by deal category
    • Resources traded
    • WM 2P reserves traded by region
    • Weighted average Implied Long-Term Oil Price vs. Brent oil price vs. deal count
    • Net M&A spend by peer group
    • H1 2016 net M&A spend by peer group
    • Implied Long-Term Oil Price vs. Traditional 'US$ per barrel' Metrics
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