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M&A implications arising from oil price collapse

Screen Shot 2015-01-02 at 23.58.26Extracts from a Reuters article published Mon Jan 5, 2015

“The uncertainty caused by the severe decline in oil prices during the final two months of 2014 nearly brought deal activity to a standstill,” said Christopher Sheehan, director of energy M&A research at IHS. “Buyers and sellers are having difficulty reaching a consensus because of the oil price tumble, which is causing significant uncertainty for the industry. However, transformative acquisition opportunities typically arise at the bottom of the crude price cycle… “Our IHS analysis of upstream companies indicates debt-laden oil and gas companies that are not well-hedged could increasingly become takeover targets in 2015,” Sheehan said.

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