Oil & Gas Industry

Q3 2022: Mergers and Acquisitions Trend Report

Industry Overview

• The Oil and Gas (O&G) Industry is one of the largest sectors in the world in terms of dollar value. Oil is crucial to the overall economic framework as it provides over half of the world’s energy.
• O&G M&A was off to a strong start in early 2022 due to rising oil prices, improving cash flows, and a robust recovery in demand globally.
• Recent geopolitical developments and economic uncertainty have significantly tapered the momentum and will keep M&A the industry in check for 2023.

Key Industry Trends

• The O&G industry rebounded from COVID-19, pushing oil prices to its highest prices in six years.
• Global upstream industry is projected to generate its highest-ever free cash flows by the end of 2022.
• Supportive policies, in combination with higher cash flows in 2022, have enabled increase investments in clean energy.
• New policies and investments could boost the role of natural gas in the clean energy transition.
• Refiners are not expected to increase core refining capacity as they prioritize financial health and optimize operations.

Recent M&A Transactions

Historical Performance

• The Oil Drilling and Gas Extraction industry has benefited from greater technological adoption and a push toward domestic energy independence, leading to tremendous growth in production capacity.
• Over the past five years, revenue has increased to $812.0 billion at an annual rate of 21.0% to 2022.
• Over the past five years, revenue has increased to $812.0 billion at an annual rate of 21.0% to 2022.

Future Industry Growth

• The Oil and Gas Extraction industry is expected to benefit from restored output but will be hindered by falling energy prices as producers are able to better meet demand as the world continues to recover from COVID19.
• The Oil and Gas Extraction industry is expected to benefit from restored output but will be hindered by falling energy prices as producers are able to better meet demand as the world continues to recover from COVID19.