By: Duane Donner
Improving profitability and attractive valuations are spurring M&A activity in the E&P industry. In this edition of Founders’ Oil & Gas Equipment and Services Market Insights Report, we explore key drivers behind consolidation in the industry and the likely impact it will have on oilfield service companies.
After several blockbuster E&P transactions in 2018 (Concho / RSP Permian, Diamondback / Energen, Encana / Newfield, etc.), upstream consolidation is off to a strong start in 2019. On April 24th , it was announced that Occidental Petroleum (Oxy) won in its bidding war against Chevron for their Permian competitor, Anadarko. Oxy’s winning bid of $57BN makes it the largest deal in the global oil industry in the last three years and solidifies Oxy’s competitive foothold in the West Texas region.