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US oil & gas industry sees a drop of 11.7% in deal activity in January 2020

The US oil & gas industry saw a drop of 11.7% in overall deal activity during January 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

A total of 68 deals worth $4.46bn were announced in January 2020, compared to the 12-month average of 77 deals.
M&A was the leading category in the month in terms of volume with 42 deals which accounted for 61.8% of all deals.

In second place was venture financing with 24 deals, followed by private equity with two transactions, respectively accounting for 35.3% and 2.9% of overall deal activity in the country’s oil & gas industry during the month.

In terms of value of deals, M&A was the leading deal category in the US oil & gas industry with total deals worth $3.87bn, while private equity and venture financing deals totalled $400m and $191.41m, respectively.

The top five oil & gas industry deals accounted for 89.03% of the overall value during January 2020.
The combined value of the top five oil & gas deals stood at $3.97bn, against the overall value of $4.46bn recorded for the month.

The top five oil & gas industry deals of January 2020 tracked by GlobalData were:

  • Illuminate Buyer’s $2.73bn acquisition of Lummus Technology
  • The $400m private equity deal with Edgewater Midstream by EnCap Flatrock Midstream
  • BCE-Mach III’s $320m asset transaction with Alta Mesa Resources and Kingfisher Midstream
  • The $278m asset transaction with Savage Inland Marine by Kirby
  • Buckeye Partners’ asset transaction with Magellan Midstream Partners for $250m.

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