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Investors Tightening the Screws on Oil, Gas Acquisitions

Owing to a collapse of oil prices at the end of 2018, M&A activity in oil and gas has almost ground to a halt after a flurry of deals last autumn. After a decade of funding the expansion of unconventional oil and gas, Wall Street investors have lost patience and want a return on their investment. Andrew Dittmar,

Senior M&A Analyst at Enverus, notes, “investors who funded the shale revolution over the last decade have become vocal in advocating for pay-outs and cutting back on providing new capital. That flowed through to limited M&A and a negative reaction to deals for much of the year.”[i].

Why the M&A market has slowed

There are various explanations as to why mergers and acquisition activity has dramatically slowed [ii] but fundamentally they boil down to money.

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