Upstream M&A Activity Surges By 250% In Record Quarter

U.S. oil and gas M&A activity in third-quarter 2018 shot up 250% over the previous quarter and broke all quarterly records dating back to fourth-quarter 2012, a recent Drillinginfo report said.

The final tally for the third quarter is $32 billion, up from $9.1 billion in the second quarter. With OPEC’s decisions and activity in the Permian, Drillinginfo accurately predicted the record quarter at the beginning of July 18.

“At the end of Q2 several things were lining up to create a more active M&A in the second half of 2018,” Drillinginfo senior director Brian Lidsky said to Hart Energy. “[It was] primarily OPEC and their coming together to maintain supply and no surprises. At that point and time, there was some concern about the future price of oil, but the OPEC meeting did in our minds take away the risks of really another downturn in oil prices to the $50 or lower level.”