Private Equity investing in oil and gas – Oil and gas news

May 4th, 2012 by | No Comment |

Private
Equity investing in oil and gas - Oil and gas news


(IBTimes)
- Private equity ("PE"), interest in U.S. oil and gas industry marked by at least a 20-year high in the first quarter of 2012, and the volume of mergers and acquisitions (M & A) reached 11 transactions, which
The total value of the transaction was a $ 11.5 billion, a 120 percent increase in activity
compared to the same period in 2011, according to PwC U.S..



For
the three months ended March 31, 2012, had a total of 44 oil and gas deals with values ??of more than $ 50 million, which amounts to $ 34 billion in transaction costs, which are not essentially different from the 45 deals representing $
34.6 billion during the same period last year.
However, there was a
small spike in the first quarter, the average deal size in 2012 $ 773 million $ 768 million in the first quarter of 2011, due to 9 'Mega' deals (deals with values ??of $ 1 billion or more).



On
a sequential basis, the volume of transactions in the first quarter of 2012 decreased from 48 deals in the fourth quarter of 2011, the total value of transactions in the first quarter of this year marked a significant decline compared to $ 80.5 billion in
the previous quarter - 58% reduction
Quarter-to-quarter.
Reducing the cost of transactions, according to PwC, can largely be attributed to the depressed price of natural gas.



"Although transaction
activity remained unchanged compared to the year, we begin to see easing the flow of transactions over the past few quarters," said Rick Roberge, head of energy M PwC, and practice.
"In
the last quarter, however, was a turning point for the activities of private capital, and we are seeing an increased appetite for these investors to deploy their dry powder in oil and gas. A 10-year low natural gas prices has attracted PE, as they see the
opportunity to get to the bottom
and
take the long view, the price of natural gas. corporations, meanwhile, view the natural gas plays in these prices as a challenge for the industry. And while most of the activity of PE was in the upper sector, we can see the trend of investment growth in the
lower space with
face-to-oil refineries, an area that has been very limited activity. "



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