M&As, which include change in ownership and control of companies (GlobalData does not consider this value as a new investment in the market) in the oil and gas industry, registered a substantial decrease of 61% in deal value from US$101.6 billion in Q4 2012 to US$39.3 billion in Q1 2013 says the report @ http://www.rnrmarketresearch.com/oil-gas-quarterly-deals-analysis-ma-and-investment-trends-q1-2013-market-report.html. Such decrease was due to some of the high-value transactions in Q4 2012 by industry majors such as Rosneft’s acquisition of 50% stake in TNK-BP from AAR Consortium for US$27.7 billion and the remaining 50% stake from BP for US$26.4 billion; Freeport-McMoRan’s agreement to acquire Plains Exploration & Production for US$6.9 billion and BP’s acquisition of 5.7% stake in Rosneft from Rosneftegaz for US$4.8 billion. The number of deals also registered a decrease of 46% with 118 in Q1 2013, as compared to 217 in Q4 2012.
The report "Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends – Q1 2013" says M&As in the upstream energy sector accounted for 39% of the total deals and 51% of deal value, with 46 deals worth US$20.2 billion in Q1 2013. Of the 46 deals in upstream energy sector, 33 deals were registered in the conventional segment and 13 deals were registered in the unconventional segment. M&As in the equipment and services sector registered a considerable decrease in deal value from US$7.2 billion in Q4 2012 to US$4.4 billion in Q1 2013. The number of deals also recorded a decrease of 35% to reach 55 in Q1 2013 from 85 in Q4 2012.
11 M&A deals worth more than US$1 billion were registered in Q1 2013, down 22% from 14 deals in Q4 2012. Deal values of more than US$1 billion each accounted for 83% of the total deal value in Q1 2013, while similar deals accounted for 84% in Q4 2012.
M&A transactions remained buoyant in the North American market with 48 deals worth US$20.5 billion in Q1 2013, accounting for 41% of the deals and 52% of total deal value in the oil and gas industry in the quarter, followed by Europe with 31 deals worth US$13.3 billion, constituting 26% of the total deals and 34% of total deal value.
Some of the high-value transactions in the upstream energy sector in Q1 2013 include Linn Energy’s agreement to acquire Berry Petroleum for US$4.3 billion; Petrochina’s agreement to acquire 28.57% interest in Eni East Africa, a natural gas exploration company, from Eni for US$4.2 billion; the agreement of Sinopec International to acquire minority stake in three oil and gas companies from Tiptop Energy and Sinopec Overseas for US$3 billion; Imperial Oil’s acquisition of 50% interest in Celtic Exploration from ExxonMobil Canada for US$1.56 billion; and Temasek’s acquisition of 5.04% stake in Repsol for US$1.35 billion. In the downstream energy sector, Kinder Morgan’s agreement to acquire Copano Energy, a midstream energy company, for US$5 billion, and Energy Transfer Partners’s proposed acquisition of the remaining 60% joint venture interest in ETP Holdco from Energy Transfer Equity for US$3.75 billion were some of the high value deals recorded in Q1 2013.
New Investments Decreased in Oil and Gas Industry in Q1 2013
New investments in oil and gas companies, including financing through equity offerings, debt offerings, private equity and venture financing, registered a decrease of 27% in the number of deals and 36% in deal value with 347 deals worth US$61.2 billion in Q1 2013, as compared to 473 deals worth US$96.1 billion in Q4 2012. In total, 16 high-value deals of greater than US$1 billion each contributed around US$21.5 billion to the total deal value in Q1 2013.
The majority of capital raising was carried out through the issuance of debt instruments that accounted for 63% of the investment with US$38.7 billion in Q1 2013, followed by equity offerings with US$17.8 billion. In terms of the number of deals, equity offerings were at the top, accounting for 54% of the total deals with 187 deals in Q1 2013, followed by 91 debt offering deals.
Substantial new investments were made in the upstream energy sector with 225 deals in Q1 2013, followed by equipment and services sector with 79 deals. However, deal value was higher in the midstream energy sector with US$37.9 billion in Q1 2013. The average investment deal value in the upstream energy sector decreased from US$168.6 MM in Q4 2012 to US$154.5 MM in Q1 2013, whereas the average investment deal value in the midstream energy sector increased marginally from US$496.7 MM in Q4 2012 to US$505.7 MM in Q1 2013.
Capital raising, through the issuance of debt instruments, by companies in North America registered a decrease of 54% in the number of deals and 53% in deal value with 47 deals worth US$20.2 billion in Q1 2013, as compared to 101 deals worth US$43 billion in Q4 2012. The raising of capital through equity offerings by companies in North America also registered a decrease of 26% in the number of deals and 14% in deal value with 118 deals worth US$11.6 billion in Q1 2013, as compared to 159 deals worth US$13.5 billion in Q4 2012.
The PE/VC market recorded a decrease of 24% with 69 deals in Q1 2013, as compared to 91 deals in Q4 2012. The large difference was due to relatively lower number of deals in North America, down from 87 in Q4 2012 to 55 in Q1 2013. Deal value registered a marginal decrease of 2% from US$4.8 billion in Q4 2012 to US$4.7 billion in Q1 2013. The upstream energy sector registered a decrease of 28% in the number of PE/VC deals and around 50% in PE/VC investments with 38 deals worth US$863.7 MM in Q1 2013, as compared to 53 deals worth US$1.7 billion in Q4 2012.
Asset Transactions Declined in the Oil and Gas Industry in Q1 2013
Asset transactions recorded a substantial decrease of 62% in deal value from US$50.5 billion in Q4 2012 to US$19.1 billion in Q1 2013. The decrease was due to some of the high-value deals in Q4 2012 such as ONGC Videsh’s agreement to acquire 8.4% interest in Kashagan field from ConocoPhillips for US$5 billion, SapuraKencana Petroleum’s agreement to acquire Seadrill’s Asian Tender Rig business for US$2.9 billion, Sheridan Production’s acquisition of oil and gas assets in Permian Basin from SandRidge Energy for US$2.6 billion and Total’s agreement to sell 20% stake in OML 138 block to Sinopec for US$2.5 billion. The number of deals also recorded a 40% decrease with 200 in Q1 2013, as compared to 335 in Q4 2012. On a year-on-year basis, asset transactions registered a marginal decrease of 5% in deal value with US$19.1 billion in Q1 2013, as compared to US$20.2 billion in Q1 2012. The number of deals also registered a decrease of 26% with 200 in Q1 2013, as compared to 270 in Q1 2012.
The upstream energy sector accounted for 85% of the total number of asset transactions and 53% of the deal value with 170 deals worth US$10.5 billion in Q1 2013. Of the total, 111 deals worth US$3.4 billion were registered in the conventional segment and the remaining 59 deals worth US$6.8 billion were registered in the unconventional segment.
North America registered 126 deals, accounting for 63% of the deals in Q1 2013. Of the total, 91 deals were registered in the US prolific oil and gas zones of Texas with 38 deals, followed by seven deals in Oklahoma and six deals in Colorado.
The average cost (US$) of production per barrel of oil equivalent per day (boed) incurred by companies for the acquired upstream assets/companies decreased from US$91,687.7 per boe of daily production in Q4 2012 to US$57,005.6 per boe of daily production in Q1 2013. The average deal implied value for 1P reserves decreased from US$20.8 in Q4 2012 to US$15.2 in Q1 2013, and average deal implied value for 2P reserves decreased from US$15.2 in Q4 2012 to US$11.5 in Q1 2013.
Shell’s agreement to acquire a minority stake in LNG assets, associated contracts and time charters in Peru, Trinidad and Tobago, and BBE Power Plant in Spain from Repsol for US$6.7 billion; Sinochem’s proposed acquisition of 82,800 net acres in horizontal Wolfcamp Shale Play, Texas, from Pioneer Natural Resources for US$1.7 billion; and Sinopec International’s agreement to acquire 50% interest in 850,000 net acres in Mississippi Lime Play in Oklahoma from Chesapeake Energy for US$1 billion were some of the high-value asset transactions recorded in Q1 2013.
Capital Raising Through Debt Offerings and Equity Offerings Decreased in Q1 2013
Global capital raising, through the issuance of debt instruments, in the oil and gas industry registered a substantial decrease of 40% in the number of deals and 48% in deal value with 91 deals worth US$38.7 billion in Q1 2013, as compared to 152 deals worth US$74.9 billion in Q4 2012. Of the total debt offering deals in Q1 2013, 50 were public offerings (down from 79 in Q4 2012) and 41 were private placements (down from 73 deals in Q4 2012).
The raising of capital through public offerings registered a decrease from US$52.5 billion in Q4 2012 to US$26.1 billion in Q1 2013. Similarly, the average public offering deal value also registered a decrease from US$672.6 MM in Q4 2012 to US$533.6 MM in Q1 2013. At the same time, private debt placements recorded a decrease in deal value from US$22.5 billion in Q4 2012 to US$12.5 billion in Q1 2013. However, the average private debt placement value increased from US$308 MM in Q1 2012 to US$313.4 MM in Q1 2013. The average debt offering deal value in North America was around US$438.2 MM in Q1 2013, while the average debt offering deal value in Europe was around US$506.2 MM during the same period.
Global capital raising, through equity offerings, recorded a decrease of 19% in the number of deals with 187 deals in Q1 2013, as compared to 230 deals in Q4 2012. However, deal value registered an increase of 9% from US$16.3 billion in Q4 2012 to US$17.8 billion in Q1 2013. Of the 187 deals, 109 were PIPE deals, 72 secondary offerings, and the remaining six were IPO deals in Q1 2013. The average equity offering value recorded an increase from US$71.1 MM in Q4 2012 to US$96.4 MM in Q1 2013.
Deal Activity Decreased in North America, Europe, and Asia-Pacific in Q1 2013
Deal activity in the North American oil and gas industry registered a significant decrease in the number of deals and deal value from 670 deals worth US$113.3 billion in Q4 2012 to 416 deals worth US$64.5 billion in Q1 2013. North America accounted for 63% of the total asset transactions and 55% of the deal value in the oil and gas industry in Q1 2013, with 126 deals worth US$10.6 billion in Q1 2013. Of the 126 deals, 109 deals worth US$9.3 billion were recorded in the North American upstream segment in Q1 2013, of which 60 deals worth US$3 billion were registered in the conventional segment and 49 deals worth US$6.3 billion were registered in the unconventional segment. M&As in North America registered significant decrease in the number of deals from 111 in Q4 2012 to 48 in Q1 2013. Of the 48 deals, 16 deals were registered in the upstream energy sector (nine were registered in the conventional segment and seven were registered in the unconventional segment).
Europe registered a substantial decrease of 60% in deal value from US$94.5 billion in Q4 2012 to US$38.2 billion in Q1 2013. Such decrease was due to the high-value transaction of Rosneft’s acquisition of 50% stake in TNK-BP from AAR Consortium for US$27.7 billion and the remaining 50% stake from BP for US$26.4 billion in Q4 2012. The number of deals also registered a decrease of 31% from 201 in Q4 2012 to 138 in Q1 2013. In Europe, upstream energy sector activity was concentrated in the conventional segment with 32 deals, while only two deals were registered in the unconventional segment.
Asia-Pacific registered a decrease in the number of deals with 111 in Q1 2013, as compared to 178 in Q4 2012. Deal value also registered a decrease with US$14.8 billion in Q1 2013, as compared to US$24.3 billion in Q4 2012. The rest of the world, including South and Central America and the Middle East and Africa, recorded a decrease in deal value from US$16.6 billion in Q4 2012 to US$14.9 billion in Q1 2013. The number of deals also registered a decrease of 36% to 66 in Q1 2013 from 103 in Q4 2012.
Comprehensive Table of Contents and more for the report "Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends – Q1 2013" at http://www.rnrmarketresearch.com/oil-gas-quarterly-deals-analysis-ma-and-investment-trends-q1-2013-market-report.html.
The report "Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends – Q1 2013" says M&As in the upstream energy sector accounted for 39% of the total deals and 51% of deal value, with 46 deals worth US$20.2 billion in Q1 2013. Of the 46 deals in upstream energy sector, 33 deals were registered in the conventional segment and 13 deals were registered in the unconventional segment. M&As in the equipment and services sector registered a considerable decrease in deal value from US$7.2 billion in Q4 2012 to US$4.4 billion in Q1 2013. The number of deals also recorded a decrease of 35% to reach 55 in Q1 2013 from 85 in Q4 2012.
11 M&A deals worth more than US$1 billion were registered in Q1 2013, down 22% from 14 deals in Q4 2012. Deal values of more than US$1 billion each accounted for 83% of the total deal value in Q1 2013, while similar deals accounted for 84% in Q4 2012.
M&A transactions remained buoyant in the North American market with 48 deals worth US$20.5 billion in Q1 2013, accounting for 41% of the deals and 52% of total deal value in the oil and gas industry in the quarter, followed by Europe with 31 deals worth US$13.3 billion, constituting 26% of the total deals and 34% of total deal value.
Some of the high-value transactions in the upstream energy sector in Q1 2013 include Linn Energy’s agreement to acquire Berry Petroleum for US$4.3 billion; Petrochina’s agreement to acquire 28.57% interest in Eni East Africa, a natural gas exploration company, from Eni for US$4.2 billion; the agreement of Sinopec International to acquire minority stake in three oil and gas companies from Tiptop Energy and Sinopec Overseas for US$3 billion; Imperial Oil’s acquisition of 50% interest in Celtic Exploration from ExxonMobil Canada for US$1.56 billion; and Temasek’s acquisition of 5.04% stake in Repsol for US$1.35 billion. In the downstream energy sector, Kinder Morgan’s agreement to acquire Copano Energy, a midstream energy company, for US$5 billion, and Energy Transfer Partners’s proposed acquisition of the remaining 60% joint venture interest in ETP Holdco from Energy Transfer Equity for US$3.75 billion were some of the high value deals recorded in Q1 2013.
New Investments Decreased in Oil and Gas Industry in Q1 2013
New investments in oil and gas companies, including financing through equity offerings, debt offerings, private equity and venture financing, registered a decrease of 27% in the number of deals and 36% in deal value with 347 deals worth US$61.2 billion in Q1 2013, as compared to 473 deals worth US$96.1 billion in Q4 2012. In total, 16 high-value deals of greater than US$1 billion each contributed around US$21.5 billion to the total deal value in Q1 2013.
The majority of capital raising was carried out through the issuance of debt instruments that accounted for 63% of the investment with US$38.7 billion in Q1 2013, followed by equity offerings with US$17.8 billion. In terms of the number of deals, equity offerings were at the top, accounting for 54% of the total deals with 187 deals in Q1 2013, followed by 91 debt offering deals.
Substantial new investments were made in the upstream energy sector with 225 deals in Q1 2013, followed by equipment and services sector with 79 deals. However, deal value was higher in the midstream energy sector with US$37.9 billion in Q1 2013. The average investment deal value in the upstream energy sector decreased from US$168.6 MM in Q4 2012 to US$154.5 MM in Q1 2013, whereas the average investment deal value in the midstream energy sector increased marginally from US$496.7 MM in Q4 2012 to US$505.7 MM in Q1 2013.
Capital raising, through the issuance of debt instruments, by companies in North America registered a decrease of 54% in the number of deals and 53% in deal value with 47 deals worth US$20.2 billion in Q1 2013, as compared to 101 deals worth US$43 billion in Q4 2012. The raising of capital through equity offerings by companies in North America also registered a decrease of 26% in the number of deals and 14% in deal value with 118 deals worth US$11.6 billion in Q1 2013, as compared to 159 deals worth US$13.5 billion in Q4 2012.
The PE/VC market recorded a decrease of 24% with 69 deals in Q1 2013, as compared to 91 deals in Q4 2012. The large difference was due to relatively lower number of deals in North America, down from 87 in Q4 2012 to 55 in Q1 2013. Deal value registered a marginal decrease of 2% from US$4.8 billion in Q4 2012 to US$4.7 billion in Q1 2013. The upstream energy sector registered a decrease of 28% in the number of PE/VC deals and around 50% in PE/VC investments with 38 deals worth US$863.7 MM in Q1 2013, as compared to 53 deals worth US$1.7 billion in Q4 2012.
Asset Transactions Declined in the Oil and Gas Industry in Q1 2013
Asset transactions recorded a substantial decrease of 62% in deal value from US$50.5 billion in Q4 2012 to US$19.1 billion in Q1 2013. The decrease was due to some of the high-value deals in Q4 2012 such as ONGC Videsh’s agreement to acquire 8.4% interest in Kashagan field from ConocoPhillips for US$5 billion, SapuraKencana Petroleum’s agreement to acquire Seadrill’s Asian Tender Rig business for US$2.9 billion, Sheridan Production’s acquisition of oil and gas assets in Permian Basin from SandRidge Energy for US$2.6 billion and Total’s agreement to sell 20% stake in OML 138 block to Sinopec for US$2.5 billion. The number of deals also recorded a 40% decrease with 200 in Q1 2013, as compared to 335 in Q4 2012. On a year-on-year basis, asset transactions registered a marginal decrease of 5% in deal value with US$19.1 billion in Q1 2013, as compared to US$20.2 billion in Q1 2012. The number of deals also registered a decrease of 26% with 200 in Q1 2013, as compared to 270 in Q1 2012.
The upstream energy sector accounted for 85% of the total number of asset transactions and 53% of the deal value with 170 deals worth US$10.5 billion in Q1 2013. Of the total, 111 deals worth US$3.4 billion were registered in the conventional segment and the remaining 59 deals worth US$6.8 billion were registered in the unconventional segment.
North America registered 126 deals, accounting for 63% of the deals in Q1 2013. Of the total, 91 deals were registered in the US prolific oil and gas zones of Texas with 38 deals, followed by seven deals in Oklahoma and six deals in Colorado.
The average cost (US$) of production per barrel of oil equivalent per day (boed) incurred by companies for the acquired upstream assets/companies decreased from US$91,687.7 per boe of daily production in Q4 2012 to US$57,005.6 per boe of daily production in Q1 2013. The average deal implied value for 1P reserves decreased from US$20.8 in Q4 2012 to US$15.2 in Q1 2013, and average deal implied value for 2P reserves decreased from US$15.2 in Q4 2012 to US$11.5 in Q1 2013.
Shell’s agreement to acquire a minority stake in LNG assets, associated contracts and time charters in Peru, Trinidad and Tobago, and BBE Power Plant in Spain from Repsol for US$6.7 billion; Sinochem’s proposed acquisition of 82,800 net acres in horizontal Wolfcamp Shale Play, Texas, from Pioneer Natural Resources for US$1.7 billion; and Sinopec International’s agreement to acquire 50% interest in 850,000 net acres in Mississippi Lime Play in Oklahoma from Chesapeake Energy for US$1 billion were some of the high-value asset transactions recorded in Q1 2013.
Capital Raising Through Debt Offerings and Equity Offerings Decreased in Q1 2013
Global capital raising, through the issuance of debt instruments, in the oil and gas industry registered a substantial decrease of 40% in the number of deals and 48% in deal value with 91 deals worth US$38.7 billion in Q1 2013, as compared to 152 deals worth US$74.9 billion in Q4 2012. Of the total debt offering deals in Q1 2013, 50 were public offerings (down from 79 in Q4 2012) and 41 were private placements (down from 73 deals in Q4 2012).
The raising of capital through public offerings registered a decrease from US$52.5 billion in Q4 2012 to US$26.1 billion in Q1 2013. Similarly, the average public offering deal value also registered a decrease from US$672.6 MM in Q4 2012 to US$533.6 MM in Q1 2013. At the same time, private debt placements recorded a decrease in deal value from US$22.5 billion in Q4 2012 to US$12.5 billion in Q1 2013. However, the average private debt placement value increased from US$308 MM in Q1 2012 to US$313.4 MM in Q1 2013. The average debt offering deal value in North America was around US$438.2 MM in Q1 2013, while the average debt offering deal value in Europe was around US$506.2 MM during the same period.
Global capital raising, through equity offerings, recorded a decrease of 19% in the number of deals with 187 deals in Q1 2013, as compared to 230 deals in Q4 2012. However, deal value registered an increase of 9% from US$16.3 billion in Q4 2012 to US$17.8 billion in Q1 2013. Of the 187 deals, 109 were PIPE deals, 72 secondary offerings, and the remaining six were IPO deals in Q1 2013. The average equity offering value recorded an increase from US$71.1 MM in Q4 2012 to US$96.4 MM in Q1 2013.
Deal Activity Decreased in North America, Europe, and Asia-Pacific in Q1 2013
Deal activity in the North American oil and gas industry registered a significant decrease in the number of deals and deal value from 670 deals worth US$113.3 billion in Q4 2012 to 416 deals worth US$64.5 billion in Q1 2013. North America accounted for 63% of the total asset transactions and 55% of the deal value in the oil and gas industry in Q1 2013, with 126 deals worth US$10.6 billion in Q1 2013. Of the 126 deals, 109 deals worth US$9.3 billion were recorded in the North American upstream segment in Q1 2013, of which 60 deals worth US$3 billion were registered in the conventional segment and 49 deals worth US$6.3 billion were registered in the unconventional segment. M&As in North America registered significant decrease in the number of deals from 111 in Q4 2012 to 48 in Q1 2013. Of the 48 deals, 16 deals were registered in the upstream energy sector (nine were registered in the conventional segment and seven were registered in the unconventional segment).
Europe registered a substantial decrease of 60% in deal value from US$94.5 billion in Q4 2012 to US$38.2 billion in Q1 2013. Such decrease was due to the high-value transaction of Rosneft’s acquisition of 50% stake in TNK-BP from AAR Consortium for US$27.7 billion and the remaining 50% stake from BP for US$26.4 billion in Q4 2012. The number of deals also registered a decrease of 31% from 201 in Q4 2012 to 138 in Q1 2013. In Europe, upstream energy sector activity was concentrated in the conventional segment with 32 deals, while only two deals were registered in the unconventional segment.
Asia-Pacific registered a decrease in the number of deals with 111 in Q1 2013, as compared to 178 in Q4 2012. Deal value also registered a decrease with US$14.8 billion in Q1 2013, as compared to US$24.3 billion in Q4 2012. The rest of the world, including South and Central America and the Middle East and Africa, recorded a decrease in deal value from US$16.6 billion in Q4 2012 to US$14.9 billion in Q1 2013. The number of deals also registered a decrease of 36% to 66 in Q1 2013 from 103 in Q4 2012.
Comprehensive Table of Contents and more for the report "Oil & Gas Quarterly Deals Analysis: M&A and Investment Trends – Q1 2013" at http://www.rnrmarketresearch.com/oil-gas-quarterly-deals-analysis-ma-and-investment-trends-q1-2013-market-report.html.