How to stay resilient amid global headwinds

  • Most of the acquisition targets, particularly in the United States are under huge financial stress with accumulated distressed assets that have deteriorating bottom lines and are burdened by high, expensive debt
  • Lower oil prices have put a strain on the bottom line of small upstream players drying up their fundraising capacity
  • Distressed players in the industry are holding on to their assets for sustenance thereby diminishing the possibility of divestures
  • Shift in private equity focus from early stage oil producers to companies with proven reserves, which are less susceptible to oil price fluctuations bolstered by the fact that US based Oil & Gas focused funds have been the lowest yielding assets over the last 10 years 2
  • Prominent Oil & Gas firms with the firepower to drive M&A are currently focusing on devising new strategies to reduce operational costs, rather than putting efforts on M&A due diligence
  • Consolidation and modernization of China’s refining sector
  • Middle East Exporters focusing on strategic expansions
  • Surge in chemical demand aiding the petrochemical industry
  • Midstream assets becoming lucrative targets
  • Private Equity players mopping up attractive deals

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