Permian gears up for M&A bonanza as PE steers toward the exits
This article originally appeared in the Enverus Weekly Market Pulse Report. Last week’s $4.3 billion acquisition of three Midland Basin-focused EnCap portfolio companies by Ovintiv was the biggest Permian deal since ConocoPhillips bought Shell’s assets in September 2021 and kicked off 2Q23 M&A with a bang. Ovintiv shareholders didn’t seem to mind the scale and […]
Ukraine Advance — Turning Point or False Dawn?
Ukraine’s extraordinary military success in rolling back the Russian occupation around Kharkiv in early September has raised hopes that Kiev may be on the cusp of a broader victory that would see Russian troops ejected not just from the Ukrainian territories taken since February, but also Russian-annexed Crimea and the Donetsk and Luhansk regions occupied […]
The Oil Patch Has Been Silent About COVID-19 — Let’s Speak Up!
The recent announcement that America’s GDP contracted by 32.9% quarter over quarter, coupled with an increase in jobless claims to 1.4 million, sums up the economic impact that COVID-19 has had on our economy. With economic activity down, demand for energy — both the fossil kind and the renewable kind — is also down. Asset […]
How Will COVID-19 and Low Oil Prices Impact Oil & Gas in Brazil?
As Brazil becomes a global hot spot for the COVID-19 pandemic, corporations and industries struggle with the logistical choices and challenges based on the need to rapidly adapt in the COVID-19 environment and the changed world that will emerge afterward. Most are focused on mere survival, but some companies may be able leverage the situation […]
Is the Past the Key to the Present for Oil & Gas?
Punditry is a great thing. Especially when it involves forecasting major economic changes that are expected to take place over years instead of weeks. It allows anyone to be wrong as often as they are right. So, all pundits are wrong at least half the time. Especially when they venture into the massively unpredictable oil […]
Sharks in the Water—Part 3
“Dice are rolling, the knives are out …” In this week’s blog, we’re highlighting two more “sharks in the water”—companies with solid balance sheets, long-term growth strategies, and cash to spend on acquisitions from stressed rivals during these stressful times. In Part 2 of this series, we highlighted Total, which we see as an […]
Sharks in the Water—Part 2
“Dice are rolling, the knives are out … ” In this week’s blog, we will highlight a new “shark in the water”—a company with solid balance sheets, long-term growth strategies, and cash to spend on acquisitions from stressed rivals during these stressful times. Last week we discussed Shell, which we believe has both the […]
Sharks in the Water
“Dice are rolling, the knives are out … ” Oil’s recent price implosion, resulting from the double whammy of OPEC’s early March failure to agree on further production cuts with Russia and demand destruction in the wake of the global coronavirus pandemic, has left the global oil & gas exploration business reeling. Subsequent OPEC++ cuts […]
Free Those BTUs!
Two weeks ago, the world continued to be awash in oil due to the success of the domestic U.S. unconventional revolution and the recent production increases in Saudi Arabia and Russia. Then, OPEC+ instituted a production cut of 9.7 MMbbl/d. Prices went up … a little. Then, on April 16, the International Energy Agency predicted […]
Whipsawed Into Reading Tea Leaves—Is This What It’s Come Down To?
Equity markets go down 10% in a day, then stage the biggest rally ever seen. Then they go down again. Then they rally, only to lose ground in the next trading session. And oil prices? Same story. From March 5-18, prices dropped by nearly 60%. From March 18-20, prices rose by 35%—no doubt due to […]