Domestic Oil and Gas Mergers and Acquisitions Reach All-Time High in 1997

Strategic Insights -

The year 1997 saw a record-breaking $12.8 billion in total value of domestic oil and gas mergers and acquisitions (M&A), according to Cornerstone Ventures L.P.'s 1997 Annual Reserve Report. This represents a 62% increase from the previous year's total of $7.9 billion. While transaction activity decreased to 215 deals in 1997, corporate mergers accounted for nearly 50% of the aggregate value, reaching $6.3 billion. Natural gas deals dominated the year, making up 57% of the total number of transactions and 62.2% of the total asset value.

Key Takeaways:

  • Total M&A asset value in 1997 reached $12.8 billion, a 62% increase from 1996.
  • Transaction activity decreased to 215 deals in 1997 from 264 in 1996.
  • Corporate mergers made up nearly 50% of the aggregate value in 1997, comprising $6.3 billion.
  • Natural gas deals dominated 1997, accounting for about 57% of the total number of transactions and 62.2% of total asset value.
  • Offshore transaction activity remained flat with 1996 levels, accounting for 33 deals in 1997.
  • Independents accounted for most of the buying, while majors were primarily on the selling end.
  • Aggregate value of offshore deals jumped 8.5% to $874 million in 1997.
  • Offshore median reserve values dropped slightly to $6.22/boe in 1997 from $6.38/boe in 1996.
  • Natural gas accounted for 59% of the 116 million boe that were exchanged offshore in terms of actual reserves traded.

Statistics:

  • $12,800,000,000: Total value of domestic oil and gas mergers and acquisitions (M&A) in 1997.
  • 215: Number of transactions in 1997.
  • 62.2%: Percentage of total asset value attributed to natural gas deals in 1997.
  • $6.3 billion: Aggregate value of corporate mergers in 1997.
  • $6,322,000,000: Aggregate value of corporate mergers in 1996.
  • $874 million: Aggregate value of offshore deals in 1997.
  • $6.22/bbl: Offshore median reserve values in 1997.
  • 116,000,000 boe: Actual reserves traded in offshore transactions in 1997.

Sources:

  • Cornerstone Ventures L.P.'s 1997 Annual Reserve Report.