Tuesday, July 5, 2011

List of E&P Companies for Sale/ Looking at Strategic Alternatives in 2011

“Strategic alternatives may include, but are not limited to, a sale of the corporation, a merger or other business combination, a farmin or farmout, an acquisition or disposition of assets, among other alternatives"

In 2011, 26 companies were looking for strategic alternatives and so far only 4 of these deals have been completed! From the Derrick ‘Deals in Play’ database, 21 companies are looking to sell or are considering strategic alternatives. Opportunities involving Canadian companies represent ~ $1 billion with more than 33 MMBOE of proved reserves and ~ 17 MBOE/d of production

The tables below show these companies along with their reserves and production profiles. Subscribers to Derrick’s database can get detailed information on each deal by clicking the bars (login required).


Chart 1: Canadian companies that are up for sale or considering strategic alternatives. Companies have been sorted by deal value. Hover over colored squares for more information. Subscribers can click on the squares for a detailed deal breakdown (login required). Source, Derrick E&P Transactions Database.






Chart 2: Global companies that are up for sale or considering strategic alternatives. companies have been sorted by deal value. Hover over colored squares for more information. Subscribers can click on the squares for a detailed deal breakdown (login required). * Maurel&Prom's principal assets are in Gabon. However they also have assets in other countries. But for this discussion Gabon is given as principal country. Source, Derrick E&P Transactions Database.








Analyst comments:
1. Most of these companies are private.
2. By far, the biggest deal here is Exco Resources which is looking at strategic alternatives, not excluding the possibility of putting up the company for sale. Derrick's analysts place the deal value in the range of $1 - $10 billion.
3. Most companies that have been put up for sale and/ or considering strategic alternatives  so far are Canadian (62%). Every other country is only represented once (either for sale or considering other strategic alternatives). 

4. In 1H 2010, 18 companies were put up for sale and most them have been sold. In the corresponding time in 2011 (1H 2011), 26 companies have been put up for sale. This is an increase in corporate sales by 44%. Apart from other factors, this also likely reflects higher oil prices. 

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