Upstream oil and gas M&A and capital raising values totalled $80.9bn in Q3 2018

Upstream Oil and Gas M&A and Capital Raising Values Totaled $80.9 Billion in Q3 2018

A total of 362 deals with a combined value of US$80.9bn were registered in the upstream oil and gas industry in Q3 2018, according to GlobalData, a leading data and analytics company.

Of the total value, US$44.5bn was registered in mergers and acquisitions (M&A) in Q3 2018, representing a significant increase of 77% from the US$25.1bn in M&A deals announced in Q2 2018. On the capital raising front, a total value of US$36.5bn in capital raising was announced in the upstream sector in Q3 2018, an increase of 19% from the US$30.7bn in capital raising announced in the previous quarter.

The company’s latest report: ‘Quarterly Upstream M&A and Capital Raising Deals Review – Q3 2018’ states that a total of 111 M&A deals, with a combined value of US$13bn, were recorded in the conventional segment, and 88 deals, with a combined value of US$31.5bn, were recorded in the unconventional segment, in the quarter.

Of the total M&A deals, 156 deals, with a combined value of US$37.5bn, were domestic acquisitions and the remaining 43, with a combined value of US$7bn, were cross-border transactions. A quarter-on-quarter comparison shows a substantial increase in domestic transaction values in Q3 2018, compared to US$17.6bn in Q2 2018. However, cross-border transaction values decreased by 7% in Q3 2018 compared to US$7.5bn in Q2 2018.

Upstream oil and gas M&A and capital raising values totalled $80.9bn in Q3 2018

Capital raising, through debt offerings, witnessed an increase of 20% in deal value, recording US$32.4bn in Q3 2018, compared with US$27.1bn in Q2 2018. However, the number of debt offering deals decreased by 10% from 60 in Q2 2018 to 54 deals in Q3 2018.

Capital raising, through equity offerings, registered a decrease of 3% in the number of deals and 8% in deal value with 98 deals, of a combined value of US$2.4bn, in Q3 2018, compared with 101 deals, of a combined value of US$2.6bn, in the previous quarter. 11 private equity/venture capital deals, with a combined value of US$1.7bn, were recorded in the upstream industry in Q3 2018, compared with 12 deals, with a combined value of US$950.3m, in Q2 2018.

Upstream oil and gas M&A and capital raising values totalled $80.9bn in Q3 2018

Americas remained the frontrunner for M&A and capital raising, registering 132 M&A deals, with a total value of US$32.6bn; and 68 capital raising transactions worth US$20.6bn in Q3 2018. EMEA registered 45 M&A deals of a combined value of US$8.3bn, and 38 capital raising deals worth US$13.4bn; while APAC registered 22 M&A deals of a combined value of US$3.7bn and 57 capital raising deals worth US$2.5bn in Q3 2018.

About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, technology, energy, financial and professional services sectors.

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