This Is The End Of U.S. O&G Independents; Only Supermajors Will Remain
18 AUGUST 2020 | 9:00 CT
The U.S. shale industry has been built up around a Private Equity model with a clear exit strategy. However, this model has become less and less economic in recent years and many independents are now thought to be sitting on illiquid assets. With no clear exit strategy in the current low price environment, is the end of M&A in the U.S. Shale industry?
- Identifying growth opportunities vs. jumping on undervalued assets: what qualities should buyers look for in an asset?
- What assets or companies will continue to attract capital?
- In what price environment will companies be willing to transact?
- How do you bridge the valuation gap between the buyer and the seller’s expectations in a low price environment?
- What will happen to functionally illiquid assets in a market lacking bidders? How do you release this trapped capital?
- Where is the capital coming from to enact these transactions? Creditors vs. trading houses vs. PE
- Is this a cyclical downturn or a permanent move away from the once highly profitable US Shale M&A model?