How to create value through North Sea M&A Report

Insight 04 July 2019

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Report summary

To inform the buyers of tomorrow, we’ve revisited 55 of the largest North Sea deals announced between 2012 and 2018. We’ve analysed each deal from today’s vantage point to quantify underlying value creation. The high-level results make uncomfortable reading for yesterday's buyers. The aggregate purchase price was US$52 billion. Today, we value these deals at just US$43 billion. The oil price collapse midway through the period obviously played a key role. But there were other factors that linked the good (and the bad) acquisitions. We explore the importance of timing, asset maturity and operatorship to the 'winners' and 'losers'. We use our high-level findings to answer the question of how to create value through North Sea M&A.

Executive summary
- The high level results
- The correlation between value creation and oil price movements is clear
- Maturity of acquired assets proved to be crucial
- Operators were able to apply the 'acquire and exploit' model
- Corporate strategies define 'winners' and 'losers'
- So how do you create value through North Sea M&A?
- Methodology

Tables and charts

This report includes the following images and tables:

North Sea value creation (55 deals, 2012 - 2018, NPV10, 2019 terms)
North Sea value creation v deal announcement year v Brent price (NPV10, 2019 terms)
North Sea value creation by deal asset maturity (2012 - 2018, NPV10, 2019 terms)