Bill Marko, managing director at Jefferies LLC, sat down with Hart Energy’s Emily Patsy and Jessica Morales to discuss what’s taken place for the oil and gas industry following a historic crash in oil prices plus the collapse in demand due to the COVID-19 pandemic.
“I’ve been doing this 40 years—I’ve never seen a downturn like this,” Marko said before adding, “It’s going to dramatically and permanently change the business.”
As far as the current state of the A&D market for oil and gas goes, he said: “It’s absolutely dead. The only activity you’ve seen on the A&D business has been deals that were underway and had agreements.
Marko noted that for those lingering transactions, sellers and buyers took a step back to look at the current oil and gas price outlook and ended up recasting deals. Examples of redone deals include the sale of Devon Energy Corp.’s Barnett Shale asset and BP Plc’s Alaska sale to Hilcorp Energy Co.
In terms of new deal flow, it’s the same story. “It’s dead and it’s because of the challenge of what will commodity price be in the next three months, in the next year, in the next three years,” he said.
Jump to a topic:
- Oil market overview (0:40)
- State of the A&D market (3:05)
- Permanent change? (5:50)
- U.S. shale outlook (8:15)
- Public capital markets (10:15)
- Private equity investors (13:12)
- Keys to survival (15:10)
Recommended Reading
Exxon, Chevron Beat 3Q Estimates, Output Boosts Results
2024-11-01 - Oil giants Chevron and Exxon Mobil reported mixed results for the third quarter, with both companies surpassing Wall Street expectations despite facing different challenges.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
ConocoPhillips Hits Permian, Eagle Ford Records as Marathon Closing Nears
2024-11-01 - ConocoPhillips anticipates closing its $17.1 billion acquisition of Marathon Oil before year-end, adding assets in the Eagle Ford, the Bakken and the Permian Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.