Worldwide, the energy sector completed 85 deals in the quarter, with a total value of $58.3 billion. In the U.S. alone, 37 deals were completed with a total value of $38.8 billion, making the region the M&A leader for the second quarter. Coming in second was Canada, where 25 completed deals had a total value of $10.1 billion. (All dollar figures are U.S.)
"Overall, transaction value and deal count rebounded after a sluggish first quarter, with acquisition costs per BOE (barrel of oil equivalent) at historic highs," reports Herold.
The most expensive place to make a deal this quarter was Europe, where three transactions were completed with an average implied proved reserve value of $29.91 per BOE. Canada's reserves didn't go cheap either. Buyers there paid an average of $24.99 per BOE. Buyers in the U.S. paid an average of $18.26, making it the third-most expensive place to acquire reserves that quarter.
Within the U.S. the most expensive region in which to buy proved reserves during the quarter was the Gulf of Mexico at $23 per BOE. The cheapest place in the U.S. to make a deal in the quarter was Appalachia, with proved reserves going for approximately $3 per BOE.
In deal volume, the Midcontinent was the busiest region in the quarter, with 12 deals completed at a total value of $4.7 billion. Second-hottest was the Rockies, where five deals were completed, totaling $5.7 billion.
Corporate transactions in the U.S. were not as prevalent in the quarter, with 13 of these for a total value of $33 billion. The Midcontinent was also hot for corporate transactions, with five completed for a total deal value of $3.6 billion. In Canada, corporate transactions were more popular in the quarter, with 17 completed for a total deal value of $9.4 million.
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