North American pipeline companies have led theThe conclusion of large-scale oil and gas M&A deals in February with several proposed deals aimed at consolidating the industry, according to data from S&P Global Market Intelligence.
During the month, the industry announced 17 corporate and minority stake agreements, up from six in February 2020. The combined value of February 2021 deals has skyrocketed year over year to $ 43 million. of dollars to nearly $ 25 billion.
The total value of announced asset transactions rebounded significantly from $ 257 million to just over $ 8 billion, with the number of transactions increasing from 11 to 17.
The largest proposed transaction in February was the offer by Brookfield Infrastructure Partners LP to take Inter Pipeline Ltd. private for $ 10.5 billion. However, the Canadian pipeline company has urged its shareholders not to proceed with the offer as the company conducts a strategic review and seeks a partner for the ailing Heartland petrochemical complex project.
Energy Transfer LP’s deal to buy Enable Midstream Partners for $ 7.3 billion from utility owners CenterPoint Energy Inc. and OGE Energy Corp. was the second-largest deal announced for the month, while Chevron Corp. . offered to combine Noble Midstream Partners LP for $ 422.8 million after acquiring parent company Noble Energy Inc. in 2020. On March 5, Chevron and Noble Midstream announced a formal merger agreement which, according to Credit Suisse, involves an implied premium of around 17% over the initial offer.
The wave of intermediate consolidation has arrived sooner than expected, but industry experts do not believe the deals offered so far are sufficient to downsize the pipeline industry to the size it needs.
On mergers and acquisitions of oil and gas assets, Exxon Mobil Corp.’s $ 1.3 billion deal to divest its untapped upstream assets in the central and northern North Sea in the UK to a company funded by a private equity firm HitecVision AS was the largest transaction involving a North American company in February.
During the month, Equinor ASA also agreed to sell its interests in the Bakken Shale in North Dakota and Montana to Grayson Mill Energy LLC, backed by EnCap Investments LP, for $ 900 million as the oil giant Norwegian state-controlled energy is moving away from oil and gas. .