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• US oil and gas industry sees 28.2% drop in deal activity
  The US oil and gas industry saw a drop of 28.2% in overall deal activity during...
  
  
  The US oil and gas industry saw a drop of 28.2% in overall deal activity during February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.
  
  

  
  A total of 56 deals worth US$2.69 billion were announced in February 2020, compared to the 12-month average of 78 deals.
  
  Mergers and acquisitions (M&A) was the leading category in the month in terms of volume with 32 deals which accounted for 57.1% of all deals.
  
  In second place was venture financing with 20 deals, followed by private equity with four transactions, respectively accounting for 35.7% and 7.1% of overall deal activity in the country’s oil and gas industry during the month.
  
  In terms of value of deals, M&A was the leading deal category in the US oil and gas industry with total deals worth US$2.04 billion, while private equity and venture financing deals totalled US$400 million and US$248.85 million, respectively.
  
  The top five oil and gas industry deals accounted for 76.5% of the overall value during February 2020.
  
  The combined value of the top five oil and gas deals stood at US$2.06 billion, against the overall value of US$2.69 billion recorded for the month.
  
  The top five oil and gas industry deals of February 2020 tracked by GlobalData were:
  

  
  
  • Eversource Energy’s US$1.1 billion acquisition of Columbia Gas of Massachusetts.
  
  
  • The US$400 million private equity deal with CenterPoint Energy Services by Energy Capital Partners.
  
  
  • WaterBridge Resources’ US$225 million asset transaction with Centennial Resource Development.
  
  
  • The US$175 million acquisition of Atlantic Coast Pipeline by Dominion Energy.
  
  
  • Schweitzer-Mauduit International’s asset transaction with Tekra and TRIENT for US$155 million.
  
  
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• Natural Gas – Prices Drop Following EIA Inventory Report
  Natural gas prices moved lower on Thursday, declining slightly more than 2% following a smaller...
  Natural gas prices moved lower on Thursday, declining slightly more than 2% following a smaller than expected draw in natural gas inventories. The weather is expected to be warmer than normal in the United States for the next 6-10 and 8-14 days according to the National Oceanic Atmospheric Administration.
  
  The Energy Information Administration reported that working gas in storage was 1,986 Bcf as of Friday, March 27, 2020. This represents a net decrease of 19 Bcf from the previous week. Expectations were for a 24 Bcf draw according to the survey.
  
  Today, cash prices at the Henry Hub lost another 11 cents, tumbling to a preliminary 21-year low settlement price at just $1.48/MMBtu. Since November, the benchmark US gas index has given up more than $1.35, or nearly 48%,
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• Oil Surges as Trump Says Russia and Saudi Arabia Ready to Cut 10 Million Barrels From Crude Production Rates
  Global oil prices rallied Thursday after President Donald Trump said ...
  Global oil prices rallied Thursday after President Donald Trump said Russia and Saudi Arabia were ready to "significantly" reduce production rates and planned a White House summit to address a market he said was 'ravaged' by the coronavirus pandemic. The President said he would broker a deal between Saudi Arabia and Russia, the world's second and third-largest producers, that would end the ongoing price war that followed the collapse of OPEC's three-year production cut agreement last month in Vienna. Trump also tweeted Thursday that he expects Russia and Saudi Arabia "will be cutting back approximately 10 million barrels", although it was unclear as to when that would begin and over what time frame if any, the cuts would take place.
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• Railroad Commission sets tentative date for oil production cut hearing
  Railroad Commission of Texas Commissioner Ryan Sitton said April...

  Railroad Commission of Texas Commissioner Ryan Sitton said April 1 that he's hopeful the oil and gas regulatory agency can hold a hearing to consider production cuts on April 14.

  
  

  The Commission received a request March 30 to hold a public inquiry as to whether or not the agency should take the extraordinary action of setting limits on Texas oil production. The last time the Commission did so was in the 1970s.

  
  

  Sitton said during a web presentation that commissioners have set a tentative date of April 14 to hold such a hearing, during which they will collect public feedback and input into whether setting production limits is a good idea and discuss how the nation and global community might come together to help the oil industry. The Commission could take a vote on whether to set those limits during its meeting on April 21, Sitton said.

  
  

  Sitton said he is is a "free market guy," but "these are extraordinary times."

  
  

  During his presentation, he predicted that it could take oil markets up to two years to recover from the COVID-19 pandemic, which has stopped travel and forced consumers inside, lowering demand at a time when Saudi Arabia is ramping up production. North American oil futures were trading at around $20 per barrel on April 1.

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• Operators Clamp Down on Capex to Combat Price Slump
  It was a week where the oil market continued to struggle though natural gas prices posted a small gain....
  It was a week where the oil market continued to struggle though natural gas prices posted a small gain.
  
  On the news front, Chevron CVX, Equinor EQNR and Eni E were the latest energy biggies forced to slash this year’s project spending budget amid a prolonged oil price slump.
  
  Overall, it was a mixed week for the sector. While West Texas Intermediate (WTI) crude futures dropped 5% to close at $21.51 per barrel, natural gas prices gained 1.9% for the week to finish at 1.634 per million Btu (MMBtu). In particular, the oil markets extended their decline from the previous week when the commodity reached its lowest settlement since February 2002, forcing even the large oil companies to suspend share buyback programs.
  
  Price Performance
  
  The following table shows the price movement of some the major oil and gas players over the past week and during the last 6 months.
  
  Company    Last Week    Last 6 Months
  XOM            +12.9%          -48.3%
  CVX             +15.8%          -35.6%
  COP            +9%                -44.6%
  OXY             +13.5%           -71.6%
  SLB             -3.6%              -54.8%
  RIG             +12.5%            -70.9%
  VLO            +16.5%            -46%
  MPC           +22.2%           -62.9%
  Read More

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