Driven by Up/Mid-Stream Liquids-Rich Transactions, US Leads Global Energy M&A
NEW YORK, April 26, 2012 /PRNewswire/ — M&A in the energy sector had a record year in 2011 and activity in 2012 already appears to be keeping up the same pace, according to a report issued today by S&P Capital IQ, a leader in multi-asset class market research, data solutions and portfolio risk analytics. The report, entitled Global Energy M&A Trends and written by S&P Capital IQ Solutions Architect, Kenneth Wee, can be found here.
According to Wee’s research, on a global basis, over $250 billion in energy M&A transactions were announced or completed in 2011. Of that volume about $200 billion of the transactions were U.S. or Canadian companies. Wee sees this trend continuing in 2012, with the lion’s share of activity taken up by the same list of key players.
“In 2011 as competition for production assets increased, the path to growth for oil and gas producers came from developing unconventional resources,” says Wee. “It appears that 2012 will not be any different, barring a new geopolitical crisis.”
Wee’s report notes that rising demand as well as increasing competition from national oil companies (NOCs) has led to exceptionally high levels of asset purchases in North America, which has large amounts of well-identified but undeveloped shale and tight gas reserves. As a result, activity in North America surpassed activity in all other regions in 2011 and this is not expected to change in 2012 if oil prices remain high.
In developing this report, Wee and the Solutions Architects team used proprietary S&P Capital IQ data, technology, and expertise to identify and understand trends affecting key players in this industry. The first section highlights key M&A drivers coming out of 2011 and into 2012. The second section looks at the deals in 2012 so far, and considers who might be active this year, with further leverage from a new proprietary “Find Buyer” tool.
Global Energy M&A Trends is part of an ongoing series of analytical reports provided by the Solutions Architects team of S&P Capital IQ and made available over S&P Global Credit Portal and standardandpoors.com.
About Solutions Architects
S&P Capital IQ’s Solutions Architects is an independent team of global finance professionals who, using a mix of market data and proprietary S&P Capital IQ research and analytics, develop custom solutions for institutional clients and wealth managers around the world. With an emphasis on discovering opportunities for increasing alpha generation while reducing risk, the team regularly publishes articles and insights, providing timely market observations and trends analysis across asset classes, sectors and geographical regions.
About S&P Capital IQ
S&P Capital IQ, a business line of the McGraw-Hill Companies (NYSE: MHP), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities around the world. We provide a broad suite of capabilities designed to help track performance, generate alpha, identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as the S&P Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Capital IQ Valuations, and Compustat; and research offerings, including Leveraged Commentary & Data, Global Market Intelligence, and company and funds research, S&P Capital IQ sharpens financial intelligence into the wisdom today’s investors need. For more information visit www.spcapitaliq.com.
S&P Capital IQ Communications
Kenneth Wee, S&P CapitalIQ
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SOURCE S&P Capital IQ