New report: oil and gas fog lifting in 2017

By Staff | October 12, 2017

Stabilizing oil prices has given investors a better view of attractive opportunities for merger and acquisition deals heading out of 2017 and into next year, according to a new report from the team at AT Kearney. While the short-term outlook looks better than in 2016, the long-term outlook for oil and gas is less clear. “Along with a tolerance for uncertainty, successful companies will need strong cost controls—an imperative reflected in the resumes of some newly appointed CEOs,” the report said.

In the short-term, energy executives are optimistic about their industry and the opportunities to make a valuable deal. More than two-thirds surveyed for the report said they expected M&A to rise next year. Companies are going to the M&A market for many reasons, including: sellers want to bolster liquidity or raise capital to fund projects; buyers need acquisitions to replenish reserves that dwindled during the past two years, and conditions are improving, including the outlook on oil prices.

For the remainder of the year, there are a few trends AT Kearny’s team expects.

-Energy transitions and changing demand will push oil companies to shift their strategies

-Digitalization will help companies reduce costs and improve operations

-Collaboration, diversification and expanding role of financial investors such as private equity firms will continue

For more, check out the report synopsis here. And, check out the main points highlighted in the images with this story.