mergers and acquisitions

The Canadian oil company consolidation formula looks a lot like the one offered by US shale producers.

In another all-stock transaction, one of the largest operators in the Permian Basin is set to add nearly 250,000 acres to its portfolio and swell oil production to more than 300,000 B/D.

ConocoPhillips promised more than just growth and costs savings when it announced a deal to acquire Concho.

The merger will effectively end the 86-year run of UK independent oil producer Premier Oil and give rise to one of the largest companies operating in the North Sea region.

The two shale producers are calling it a “merger of equals” and will share management duties once the transaction closes. The combined company aims to become the fourth-largest producer of tight oil in the US.

An economic downturn and global pandemic are among many issues US midstream operators are dealing with in 2020, including exposure to upstream bankruptcies, limited M&A activity, and regulatory issues.

The latest deal is set to make Southwestern Energy the third-largest producer in the gas-rich Appalachian Basin.

The all-cash deal bucks a recent trend of international oil companies divesting of Canadian assets and adds 15,000 B/D of production to the buyer’s total.

The combined company will target the renewables market. Aker Solutions intends to spin off its wind development and its carbon capture technology businesses into two new companies, which will be part of its renewable energy group, Aker Horizons.

As capital markets dry up and shale producers look for pathways to growth, oil and gas data analytics firm Enverus predicts the US sector will see a “surge” in mergers and acquisitions in 2020.