Total upstream deal activity continued to drop in the second quarter, accounting for 18 transactions representing $8.3 billion, or a decrease of 55% and 67% in total deal volume and value, respectively, compared to the same period in 2014.
Additionally, the total number and value of oilfield services deals decreased 33%, to four deals, and 40%, to $1.6 billion, respectively, when compared to the same period last year.
The number of deals in the midstream segment jumped 110% while value increased 130% compared to 2Q 2014. There were 21 midstream deals, or 44% of total deal activity, contributing $27.7 billion in value, said PwC US.
For the period ending June 30, 2015, there were a total of 47 oil and gas deals (with values greater than $50 million) accounting for $38.8 billion, compared to 39 deals worth $34.5 billion in the first three months of the year, and 65 deals worth $48.9 billion in 2Q 2014.
“Financial investors see opportunities to make investments as companies adjust their portfolios in this dynamic environment,” said Rob McCeney, PwC US energy & infrastructure deals partner. “With cash on hand and experienced management teams in place, we expect to see more private equity commitments and deals in the second half of 2015.”