Not many of us would have guessed the deal of the quarter that blasted the energy headlines last month. Chevron announced that it was acquiring Anadarko for $33 billion in cash and stock or $65 per share. The merger places Chevron in a significant position with a wide corridor of acreage in the Permian. Since the blockbuster deal was announced, industry analyst believe more M&A activity is coming. More so with companies that are considered Permian pure-plays like Pioneer and Concho. According to oil and gas experts, companies that primarily operate in the Permian and then merge have the best potential to integrate their acreage position. Occidental also bid for Anadarko at $70 per share and was caught off guard that they struck a deal with Chevron.
In the past 12 months there has also been a string of O&G software and technology acquisitions. First off, Drillinginfo went on a buying spree purchasing a long list of established software companies to complement its existing suite of upstream products. To name a few, they purchased: Oildex, MineralSoft, Cortex, 1Derrick, Midland Map Co and PLS. Most of the acquisitions occurred after the private equity firm Genstar Capital completed the purchase of Drillinginfo Holdings. After Quorum Software was acquired by private equity firm Thoma Bravo, the fullstream software provider then acquired Coastal Flow Measurement and its subsidiary Flow-Cal, a producer of gas and liquid measurement software. Oil and gas accounting solutions company Wolfpack Software acquired LandPro Corp in March of this year. P2 Energy Solutions, another E&P software provider acquired iLandMan, a SaaS-based land management platform. Waterfield Energy Software, a Tulsa-based oil and gas software provider with a focus on the midstream and downstream markets, acquired NeoFirma, a cloud-based field operations platform that is geared toward independent oil and gas companies.
There has been a lot of M&A activity recently and it will be exciting to see in the months ahead as segments of the industry continue to consolidate and adapt to a digital oilfield with a goal of improving operation, market share and personnel performance.