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Derrick Digest for March 24, 2017: 'Let's make a deal' hot topic in the oilpatch this year

 

The Derrick Digest is a weekly collection of curated content, based on events from across the oil and gas industry, that caught our eye at Pennine Petroleum Corporation.

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MARCH 24, 2017

Portfolio realignment will likely be the motivating factor in deal-making in the oilpatch this year and energy industry insiders say asset sales will be how those deals will be funded.

A survey by Torys LLP and Mergemarket found that 67 per cent of oil and gas executives and investment bankers “expect the volume of energy sector deals in Canada to increase over the next 12 months,” according to a recent piece in the Financial Post.

Oil prices are expected to hit higher than benchmarks last year, which should drive acquisitions.

“Stability in commodity prices is key in getting transactions across the goal line, so we think we’ll see more M&A occurring in 2017,” said Tom Pavic, vice-president at Sayer Energy Advisors in Calgary.

Last year, M&A in the oil, gas and consumable fuels arena reached a record of $76.7 billion over 140 deals, according to FP Infomart data.