In Q3 2016, there was $24.1 billion of new upstream oil and gas M&A deals, a total which falls just short of the $26.5 billion spend in Q2 2016, but marks an increase compared with the $17.7 billion spend in Q3 2015, according to data from Evaluate Energy. The backdrop for the quarter was of a WTI oil price that averaged $44.74, marginally down on the average of $45.58 during Q2 2016 but with much less volatility; the oil price never breached $50 and only once closed a day lower than $40 in the entire three month period.
In the main, deals were targeted in areas with the best short to medium term reward:
•The Permian basin, economically one of the best in the United States due to its multi-stacked pay zones, attracted 34% of the total spend during the quarter, with 10 of the deals in the basin this quarter being agreed for over $100 million.
•The Marcellus play, which is proving to be amongst the most economic gas plays in the United States, attracted the largest deal of the quarter when Rice Energy Inc. acquired Vantage Energy LLC for $2.8 billion.
Top 10 upstream M&A deals announced during Q3 2016
