Insight

Global upstream M&A: half-year review 2016

06 July 2016

Get this report

$1,350

You can pay by card or invoice

Share link

Contact us

Submit your details to receive further information about this report.

First name
Last name
Job Title
Company
Email
Telephone

Region

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

For details on how your data is used and stored, see our Privacy Notice.

- FAQ's about online orders
- Find out more about subscriptions

06 July 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.

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

Tables and charts

This report includes 32 images and tables including:

H1 2016 deals
Global upstream M&A: half-year review 2016: Image 2
Global upstream M&A: half-year review 2016: Image 3

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
Deals in Pipeline by region/resource
Deals in Pipeline by disposals / acquisitions
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
Net M&A spend – Majors
Net M&A spend – Independents
Net M&A spend – NOCS (domestic and overseas)
Overseas acquisitions - NOCs by NOC origin
North America deal spend by peer group
Deal count by region ex-North America
Global upstream M&A: half-year review 2016: Image 21
M&A Spend – N.A. tight Oil to end June 2016
M&A Spend – N.A. uncon gas to end of June 2016
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