Pat Maguire comments in the Lexpert Special Edition: Energy 2023 on mergers and acquisitions in the oil and gas sector in the net-zero carbon transition. He describes the market for M&A as "stable with positive indicators." He notes that oil prices have been reasonably strong, as many oil and gas companies pay down a lot of debt and buy back shares.
While there has been some consolidation through M&A activity in the first half of the year, Pat says it, "was probably slower than some people would have guessed." He sees a more robust market and M&A momentum in the second half of 2023. Still, he notes that deal making is likely being balanced with capital investment being deployed toward efficiency and decarbonization of existing production instead of taking on new projects.
Bennett Jones