twitter linkedinfacebookacp contact us

New report reveals rise in midstream M&A in Q1 2015

Industry

Midstream oil and gas deals activity, including capital markets and mergers and acquisitions (M&A), increased globally from 129 transactions in Q4 2014 to 139 in Q1 2015, says research and consulting firm GlobalData

According to the company’s latest quarterly midstream deals review, M&A accounted for 23 per cent and 38 per cent of the total number of midstream deals and deal value in Q1 2015 respectively with 32 transactions totalling US$30.7bn.

However, this value represents a 35 per cent decrease from the US$47.4bn acquired from the same number of transactions in Q4 2014.

GlobalData head of Oil & Gas Research and Consulting Matthew Jurecky said that the Americas remained the regional frontrunner in terms of M&A and asset transactions in Q1 2015, with a total value of US$31.1bn from 38 deals.

Jurecky added, “The midstream sector’s top deal in Q1 2015 was Energy Transfer Partners’ agreement to merge with Regency Energy Partners to form one of the industry’s largest partnerships. In addition to expected cost savings of more than US$160mn per year, the revenues generated from incremental gathering and processing volumes will help counter lower commodity prices.

“As evident in Kinder Morgan’s acquisition of Hiland last quarter, access to upside from some of the Lower 48’s most resilient plays, such as the Marcellus, Eagle Ford and West Texas, is driving deals. Capital spending and development is most sensitive to upside from improved economics through a price rebound or otherwise.”

GlobalData’s report revealed that there were 20 asset transactions reported globally in the midstream sector in Q1 2015, down from 25 in Q4 2014. However, the total value for these deals doubled from US$1.8bn to US$3.6bn during this period.

Similarly, both capital-raising through the debt market and financing through private equity and venture capital registered significant increases in value between Q4 2014 and Q1 2015.

Jurecky continued, “Nine companies issued more than US$10bn in debt last quarter led by Williams, with US$4.5bn, followed by Energy Transfer Partners and Kinder Morgan, with US$3bn and US$2.5bn, respectively.

“Activity is now above Q1 2014 levels, after a low in Q3 2014 prior to the oil price crash. As the tougher business environment has led to constrained cash flow, capital is sought in the debt market to fund ongoing capital programs and repay other obligations.”

The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. (Image source: Adobe Stock)

SmartMaster can be used with a range of ABB and third-party instruments. (Image source: ABB)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

ARO Drilling and IMI announce first Kingdom jack up rig (Image source: ARO)

Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)

Michael Monica, director sales, marketing and customer care at GPT Industries signs the agreement with Mohamed Altaf, sale manager, Abdulla Fouad Energy Services. (Image source: Alain Charles Publishing)

Amin H. Nasser, CEO of Aramco. (Image source: Aramco)

The system can activate notification and hazard mitigation equipment to notify workers and safeguard facilities. (Image source: MSA Safety)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

The new discoveries will bolster Aramco’s strategy to increase gas production by more than half over 2021 levels, through 2030. (Image source: Adobe Stock)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

Source: SafeStart

The new technology is designed to address the challenging conditions in unconventional wells. (Image source: Adobe Stock)

The Ampelmann A-type enabling safe offshore access in the Middle East. (Image source: Ampelmann)

Aramco has produced the first unconventional tight gas from its South Ghawar operational area ahead of schedule. (Image source: Adobe Stock)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

TotalEnergies and SONATRACH will develop gas resources in Algeria's north-east Timimoun region, (Image source: Adobe Stock).

By using analytics to augment and empower the workforce, pipeline operators can optimise operations and improve asset availability. (Image source: Adobe Stock)

The oil price is hovering around the US$90/bbl mark. (Image source: Adobe Stock)

The Craig International Qatar team. (Image source: Craig International)

The SuperFill II diverter reduces induced surge pressure. (Image source: Halliburton)

Among other services, KBR will offer proprietary equipment for NCIC's 1,200 metric tonnes per day ammonia plant. (Image source: Adobe Stock)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

ADNOC Gas recorded robust financial and operational results in 2023. (Image source: Adobe Stock)

Over 4,000 km of SoluForce pipe has been installed around the world. (Image source: SoluForce)

Block 56 is targeted for commercialisation in 2024. (Image source: Canva)

The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

Source: SafeStart

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

The company is well positioned in 2024, with a reshaped and resilient business and a strong balance sheet. (Image source: Adobe Stock)

The vessel addresses the growing demand for accurate hydrographic data. (Image source: Fugro)

The virtual inhouse seismic processing centre will allow each of the decentralised business units of Wintershall Dea globally to collaborate efficiently and directly with DUG. (Image source: Adobe Stock)