For more than three-quarters of oil and gas executives, optimizing resilience and responsiveness often includes identifying assets to sell that are either underperforming or at risk of disruption. However, oil and gas companies are also considering divestments of mature assets to strengthen their balance sheets and pay down debt.
Portfolio optimization and increasing interest from private equity keep M&A activity at healthy levels
What constitutes divestments for some, presents acquisition opportunities for others. This may explain why more than 80% of oil and gas executives expect the global M&A market to continue to improve over the next 12 months, up from 64% six months ago. Even more positively, 55% of survey respondents expect to actively pursue deals in the coming year, down slightly from our last survey, but almost 10 percentage points above the global average. In addition to portfolio optimization, we expect growing interest from private equity and the use of creative deal structures to fuel M&A activity.