LNG, Oil & Gas, M&A Market Intelligence Specialist

Massimo Bellino

Event-Driven

<p>The unfolding bidding war for <a href="https://www.smartkarma.com/entities/5048" target="_blank" data-smartkarma-citation="entities:5048:1">Anadarko Petroleum (APC US)</a>  is heating up a dormant upstream oil and gas M&amp;A market that had been experiencing a record low level of activity in the last four months. The US large-cap E&amp;Ps have been conspicuously absent from buy-side M&amp;A during the oil price downturn. The high-profile potential acquisition of Anadarko, valued at more than $50bn and one of the top five largest M&amp;A deals in the industry, could kick-off a new wave of consolidation among the leading independent US E&amp;Ps. <a href="https://www.smartkarma.com/entities/11091" target="_blank" data-smartkarma-citation="entities:11091:1">Chevron Corp (CVX US)</a> chose an opportune time to acquire Anadarko as the US independent E&amp;Ps are trading at the lowest differential EV/DACF multiple for the last ten years compared to the multiple traded by the oil majors. Chevron and Anadarko would be an ideal strategic fit, but can the US major improve its bid in light of the much higher competing offer from Occidental Petroleum (OXY US)?</p>
<h2><strong>Exhibit 1: Bid for Anadarko swells the M&amp;A volume in upstream Oil &amp; Gas after a meagre start of the year</strong></h2>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/086/102/original/Picture1.png?1556417725" class="editor-image img-responsive" data-smartkarma-image-id="86102"></figure>
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<em>Source: Energy Market Square, Capital IQ. </em><em>Market value-weighted index including independent E&amp;P companies with market value greater than $300m as of 19 April 2018. Data as of 24 April 2019. The M&amp;A volume for September 2018 includes the merger between Wintershall and DEA with an estimated value of $10bn.</em>
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The unfolding bidding war for Anadarko Petroleum (APC US)  is heating up a dormant upstream oil and gas M&amp;A market that had been experiencing a record low level of activity in the last four months. The US large-cap E&amp;Ps have been conspicuously absent from buy-side M&amp;A during the oil price downturn. The high-profile potential acquisition of Anadarko, valued at more than $50bn and one of the top five largest M&amp;A deals in the industry, could kick-off a new wave of consolidation among the leading independent US E&amp;Ps. Chevron Corp (CVX US) chose an opportune time to acquire Anadarko as the US independent E&amp;Ps are trading at the lowest differential EV/DACF multiple for the last ten years compared to the multiple traded by the oil majors. Chevron and Anadarko would be an ideal strategic fit, but can the US major improve its bid in light of the much higher competing offer from Occidental Petroleum (OXY US)?
Exhibit 1: Bid for Anadarko swells the M&amp;A volume in upstream Oil &amp; Gas after a meagre start of the year


Source: Energy Market Square, Capital IQ. Market value-weighted index including independent E&amp;P companies with market value greater than $300m as of 19 April 2018. Data as of 24 April 2019. The M&amp;A volume for September 2018 includes the merger between Wintershall and DEA with an estimated value of $10bn.


Competing Bids for Anadarko Finally Break the Calm in the Upstream Oil & Gas M&A Market

United States

Phillips 66 is a downstream energy company.  The Company's operations include oil refining, marketing and transportation.  Phillips 66's operations also include chemical manufacturing and power generation.

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Phillips 66 (PSX US)

Competing Bids for Anadarko Finally Break the Calm in the Upstream Oil & Gas M&A Market

The unfolding bidding war for Anadarko Petroleum (APC US) is heating up a dormant upstream oil and gas M&A market that had been experiencing a...

Massimo Bellino

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