Citigroup Inc. said Nov. 13 it hired four bankers to work on the buying and selling of oil and gas acreage, betting the dislocation in commodity markets in 2020 will yield more land deals among energy producers.
The quartet is led by Tony Fernandez, previously with boutique investment bank Intrepid Financial Partners, and also includes two hires from Jefferies Financial Group and another former Intrepid banker, according to a Citi statement.
The pace of mergers and acquisitions in the U.S. oil and gas sector has been the worst in a decade, according to data provider Enverus, as most shale producers remain reluctant to spend after an oil price crash earlier this year.
While the market for land deals has remained weak as firms eschew growth, some producer tie-ups have happened in the last few weeks, as companies seek scale to reduce costs.
More A&D deals could happen in 2021 though. Exxon Mobil Corp. said last month it was evaluating whether to sell natural gas holdings in North America as it grapples with market conditions. BP Plc wants to remake itself as a green energy company, which will require shrinking its oil and gas business over time.
“The sector has entered into consolidation phase and the A&D activity will likely pick up in 2021 as companies seek to deleverage, the energy market stabilizes and improves, and companies seek to divest of non-core assets post consolidation,” Stephen Trauber, global head of energy at Citi.
Recommended Reading
Magnolia’s Board Adds Ropp as Independent Director
2025-01-07 - Alongside his experience in oil and gas operations, R. Lewis Ropp has a background in finance, capital markets and investment management, Magnolia Oil & Gas said.
Expand Appoints Dan Turco to EVP of Marketing, Commercial
2025-02-13 - Expand Energy Corp. has appointed industry veteran Dan Turco as executive vice president of marketing and commercial.
Talos Selects Longtime Shell Exec Paul Goodfellow as President, CEO
2025-02-03 - Shell veteran Paul Goodfellow’s selection as president, CEO and board member of Talos Energy comes after several months of tumult in the company’s C-suite.
Berry Announces Jeff Magids as New CFO
2025-01-21 - Jeff Magids was appointed as Berry Corp.’s new CFO on Jan. 21 in replacement of Mike Helm, effective immediately.
Devon Energy Announces Changes to Executive Leadership Team
2025-01-13 - Among personnel moves, Devon Energy announced John Raines and Trey Lowe have been promoted to senior vice president roles.