Mergers In The Oil Patch: Lessons From Past Downturns

Exhibit 1 Oil and gas sector business cycles

by McKinsey & Company
Past collapses in oil prices have prompted a deluge of deals. As activity looks set to pick up again, companies that acquire in order to cut costs are likely to be the most successful. Mergers and acquisitions in the oil and gas sector may be coming into fashion again. In the current era of low prices, a confluence of events makes acquiring more attractive. Pricing hedges that had locked buyers into higher prices are rolling off. […] Read more

Power Transactions And Trends, Q2 2016

Power Transactions And Trends, Q2 2016

by Ernst & Young
This Q2 2016 edition of Power transactions and trends reviews quarterly deal activity within the power and utilities (P&U) sector and forecasts the trends that will shape future mergers and acquisitions (M&A). When we consider Q2’s most prominent M&A trends, it’s clear that buyers are still seeking “safe bets” amid ongoing sector and global volatility. […] Read more

Capturing Value From M&A In Upstream Oil & Gas

Capturing Value From M&A In Upstream Oil & Gas

by McKinsey & Company
Successful M&A requires both a solid strategy and excellence in integration planning and execution. The collapse in oil price has begun to trigger consolidation in the oil & gas industry, with six large-scale deals already executed. Given stalling cash flows, looming bankruptcies, shrinking capex budgets, and the tremendous war-chests raised by private equity, we expect to see a dynamic M&A environment that fosters creative deal-making — especially for independents and small to midsized entities. […] Read more

Mergers In A Low-Oil-Price Environment: Proceed With Caution

Mergers In A Low-Oil-Price Environment: Proceed With Caution

by McKinsey & Company
A deal deluge typically follows an oil-price collapse — but hasn’t always created value. Past cycles teach that deals enabling players to lower costs will probably be most valuable in today’s volatile oil-price world. Unlike what happened during previous oil-price collapses, M&A activity has been limited since prices started to fall in 2014. But the signs are that M&A activity may be building, and oil-company management teams should think about what deal strategies they should pursue. […] Read more

Capturing Value From M&A In Oil And Gas: Five Key Questions Companies And Investors Must Ask

Capturing Value From M&A In Oil And Gas: Five Key Questions Companies And Investors Must Ask

by KPMG
The oil and gas sector is faced with intense pressure on cash flow due to low returns on capital. While there is a reset of the cost base, the industry also needs to renew its resource and production portfolios for long-term sustainability. M&A is an option that addresses some of the challenges facing the sector — providing buyers with the opportunity to upgrade portfolios, propel operational improvements, acquire strategic capability and renew assets for the longer term. […] Read more

Power Transactions And Trends, Q1 2016

Power Transactions And Trends Q1 2016

by Ernst & Young
This Q1 2016 edition of Power transactions and trends reviews quarterly deal activity within the power and utilities (P&U) sector and forecasts the trends that will shape future mergers and acquisitions (M&A). After hitting historic levels in 2015, M&A momentum continued in Q1 2016, with deal value reaching a five-year Q1 high of US$44.4b, 50% more than that of Q1 2015. […] Read more

Global Oil And Gas Transactions Review 2015

Global Oil And Gas Transactions Review 2015

by Ernst & Young
The dramatic drop in both crude oil and natural gas prices across the year combined with a high level of uncertainty about their future trajectory challenged oil and gas merger and acquisition (M&A) activity in 2015. Crude oil prices, which began the year at US$55 per barrel (Brent), declined to US$37 per barrel by December, the lowest level since May 2004 with natural gas prices experiencing a similar journey. […] Read more

Capturing Value From M&A In Oil And Gas: Implications For Integration

Capturing Value From M&A In Oil And Gas: Implications For Integration

by McKinsey & Company
M&A may help address challenges facing oil and gas companies in today’s low oil price climate. We identify seven best practices in planning and execution that are essential to capturing full value from M&A. The recent collapse in the oil price has further intensified pressure on cash flows in an industry already saddled with low returns on capital. Cost-cutting measures are ramping up as the industry responds with belt tightening, as seen in prior downturns. […] Read more

Energy & Natural Resources: Strategic Procurement And M&A Insights 2014

Energy & Natural Resources: Strategic Procurement And M&A Insights

by KPMG
To unlock value for companies, procurement needs to become a strategic business partner. The development of stronger procurement capability in category management, strategic sourcing, demand management and supplier relationship management is required to cash-in on the bankable dollars from superior procurement management. […] Read more

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