Latest news with #Enverus
Calgary Herald
2 days ago
- Business
- Calgary Herald
Despite pipeline talk, work for oil and gas drillers is slowing
Canada's oil and gas drilling rigs are having a slow start to the summer — even as talk of a potential new pipeline heats up. The latest data shows just over 160 rigs were actively drilling for oil and gas in June, the lowest level in at least two years and down 17 per cent from 2024 levels. The industry is facing stubbornly low prices for their fuels, while poor weather and wildfires have added to the challenges. 'Companies remain cautious ahead of the volatility that we're seeing with oil prices, (natural gas) prices and the politics in terms of trade deals that the U.S. government continues to make,' said Jeremy McCrea, an energy analyst at the Bank of Montreal. North American oil prices have been trading for below US$70 a barrel throughout July, a sharp contrast from a year ago, when oil was going for more than US$80 a barrel. One of the top worries overshadowing prices this year has been that U.S. tariffs could slow global economies and their demand for oil. The tariff threat has also forced the Canadian government under Prime Minister Mark Carney to rethink its trade relationships and focus more on boosting the domestic economy with nation-building projects. Alberta Premier Danielle Smith has been pushing for a new oil pipeline that would run from Alberta to B.C.'s northern coast, but her proposal faces roadblocks, including a federal ban on oil tankers along that coastline. Carney has said it's 'highly likely' a new oil pipeline will make his government's list of nation-building projects, though a private sector company or group has yet to emerge with an actual proposal. Against this backdrop of rising stakes in the pipeline debate, the June dip in oil and gas drilling rigs was 'most concerning,' according to Mark Scholz, the president and CEO of the Canadian Association of Energy Contractors, an industry group. Still, Scholz said it's unclear if this decline in activity will lead to a drop in overall production. 'We certainly are seeing some headwinds,' he said, 'but it is much too early to sound any sort of alarms.' Despite these near-term challenges, there is still 'underlying enthusiasm' around pipelines in the industry, said Trevor Rix, director of research at the data company Enverus. 'There's an increasing awareness that commodity prices are going to move higher longer-term just due to increasing supply costs in aging basins in North America,' Rix said. Natural gas prices in Western Canada have been chronically low, partly because the industry has produced too much fuel without enough buyers to take it. There is hope that a new liquified natural gas (LNG) shipping terminal on B.C.'s coast will help ease the supply glut and raise prices for producers, but that hasn't happened so far. Given these challenges, it was 'natural' to see a dip in the number of drilling rigs, Rix said. 'We need as much LNG as we can get on the West Coast,' he said. 'It probably represents some of the lowest (cost) gas in, certainly, North America… getting more of that gas to tidewater is directionally positive.'
Associated Press
7 days ago
- Business
- Associated Press
Upstream M&A hits the brakes, slowing to $14 billion
Private capital, international buyers could help deals gain traction in the second half of 2025 CALGARY, AB, July 23, 2025 /PRNewswire/ -- Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, is releasing its summary of 2Q2025 upstream M&A activity and outlook for the rest of the year. Upstream M&A decelerated in the second quarter of 2025, with value falling 21% quarter-over-quarter to $13.5 billion. That is the second lowest quarterly deal value since the start of 2024 and placed 1H25 M&A value at $30.5 billion, a 60% drop compared to the first half of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' commented Andrew Dittmar, principal analyst at EIR. 'That added an additional barrier to a market that was already challenged by the lack of remaining attractive opportunities for public E&Ps, especially in the Perman Basin. The engine of M&A over the last few years has sputtered and stalled.' In contrast to public operators, private capital has more flexibility in the types of deals and assets pursued as well as not needing the same scale as public companies. Some are returning to the Permian Basin, picking up small assets or focusing on extensional areas not yet consolidated by large operators. However, the biggest opportunities are likely to be in areas off the radar of public companies. The SCOOP | STACK in Oklahoma is one such region where public companies are more likely to be sellers than buyers. Asia-based companies with LNG import commitments are an emerging force for buying Gulf Coast area gas assets. The combination of accelerating international interest in gas linked to Gulf Coast LNG plus emerging datacenter demand in Appalachia has the potential to rev up gas M&A. One type of deal that has been notably absent this year is public company consolidation, a key component of the market in 2023 and 2024. 'These types of deals should be easier to negotiate in a volatile environment given they are generally stock-for-stock swaps that limit commodity price risk,' said Dittmar. View Enverus' Top 5 deals and full announcement including extended commentary About Enverus Intelligence Research Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at View original content to download multimedia: SOURCE Enverus
Yahoo
7 days ago
- Business
- Yahoo
Dealmaking in US upstream oil and gas tumbles as volatility rattles investors
By Georgina McCartney HOUSTON (Reuters) -Volatility across energy and equity markets spooked investors in the second quarter, slowing the pace of mergers and acquisitions in the U.S. upstream oil and gas sector, analytics firm Enverus said on Wednesday. The slump in dealmaking follows a series of blockbuster takeovers by oil and gas majors in recent years, which culminated in a record $192 billion worth of deals done in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. The first half of 2025 saw a total of $30.5 billion change hands, which is a 60% decline compared with the same period of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' said Andrew Dittmar, principal analyst at Enverus Intelligence Research. Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, stoking concerns of a recession and a drop in fuel demand, and the Organization of the Petroleum Exporting Countries announced plans to unwind deep output cuts. Prices also jumped as conflict in the Middle East inflated traders' risk premium. During the second quarter, U.S. crude futures hit a low of $57.13 a barrel on May 5, before swinging to a high of $75.14 on June 18, according to data from LSEG. Houston-based exploration and production company EOG Resources bought Encino Acquisition Partners for $5.6 billion in May, taking the lion's share of deals done in the second quarter, according to Enverus. Viper Energy followed with its purchase of Sitio Royalties for $4.1 billion in June. Those two transactions accounted for over 75% of second-quarter deal value, Enverus said. "The engine of M&A over the last few years has sputtered and stalled, given there are just a few remaining targets," Dittmar said. Companies will eventually need to explore opportunities to buy assets abroad, in Canada or further afield in areas like Argentina's Vaca Muerta, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
7 days ago
- Business
- Reuters
Dealmaking in US upstream oil and gas tumbles as volatility rattles investors
HOUSTON, July 23 (Reuters) - Volatility across energy and equity markets spooked investors in the second quarter, slowing the pace of mergers and acquisitions in the U.S. upstream oil and gas sector, analytics firm Enverus said on Wednesday. The slump in dealmaking follows a series of blockbuster takeovers by oil and gas majors in recent years, which culminated in a record $192 billion worth of deals done in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. The first half of 2025 saw a total of $30.5 billion change hands, which is a 60% decline compared with the same period of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' said Andrew Dittmar, principal analyst at Enverus Intelligence Research. Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, stoking concerns of a recession and a drop in fuel demand, and the Organization of the Petroleum Exporting Countries announced plans to unwind deep output cuts. Prices also jumped as conflict in the Middle East inflated traders' risk premium. During the second quarter, U.S. crude futures hit a low of $57.13 a barrel on May 5, before swinging to a high of $75.14 on June 18, according to data from LSEG. Houston-based exploration and production company EOG Resources (EOG.N), opens new tab bought Encino Acquisition Partners for $5.6 billion in May, taking the lion's share of deals done in the second quarter, according to Enverus. Viper Energy (VNOM.O), opens new tab followed with its purchase of Sitio Royalties (STR.N), opens new tab for $4.1 billion in June. Those two transactions accounted for over 75% of second-quarter deal value, Enverus said. "The engine of M&A over the last few years has sputtered and stalled, given there are just a few remaining targets," Dittmar said. Companies will eventually need to explore opportunities to buy assets abroad, in Canada or further afield in areas like Argentina's Vaca Muerta, he added.
Yahoo
7 days ago
- Business
- Yahoo
Dealmaking in US upstream oil and gas tumbles as volatility rattles investors
By Georgina McCartney HOUSTON (Reuters) -Volatility across energy and equity markets spooked investors in the second quarter, slowing the pace of mergers and acquisitions in the U.S. upstream oil and gas sector, analytics firm Enverus said on Wednesday. The slump in dealmaking follows a series of blockbuster takeovers by oil and gas majors in recent years, which culminated in a record $192 billion worth of deals done in 2023. There were $13.5 billion worth of deals disclosed in the quarter ended June 30, marking a 21% drop quarter-over-quarter, Enverus said. The first half of 2025 saw a total of $30.5 billion change hands, which is a 60% decline compared with the same period of 2024. 'Volatility in commodity and equity markets raised a major yellow flag for M&A, slowing the pace of dealmaking,' said Andrew Dittmar, principal analyst at Enverus Intelligence Research. Oil prices fell to multi-year lows last quarter after U.S. President Donald Trump unveiled an extensive list of trade tariffs in April, stoking concerns of a recession and a drop in fuel demand, and the Organization of the Petroleum Exporting Countries announced plans to unwind deep output cuts. Prices also jumped as conflict in the Middle East inflated traders' risk premium. During the second quarter, U.S. crude futures hit a low of $57.13 a barrel on May 5, before swinging to a high of $75.14 on June 18, according to data from LSEG. Houston-based exploration and production company EOG Resources bought Encino Acquisition Partners for $5.6 billion in May, taking the lion's share of deals done in the second quarter, according to Enverus. Viper Energy followed with its purchase of Sitio Royalties for $4.1 billion in June. Those two transactions accounted for over 75% of second-quarter deal value, Enverus said. "The engine of M&A over the last few years has sputtered and stalled, given there are just a few remaining targets," Dittmar said. Companies will eventually need to explore opportunities to buy assets abroad, in Canada or further afield in areas like Argentina's Vaca Muerta, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
