CFA » Blog Archive M&A Quarterly News In The Energy Industry Sector


The report below gives a good overview of the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2019 included 75 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in November when OMOG JV LLC, a joint venture of Rattler Midstream LP and Oryx Midstream Services LLC, acquired Reliance Gathering LLC, a portfolio company of Metalmark Capital LLC, for US$356 million in cash. Reliance Gathering is a crude oil gathering affiliate of Permian Basin-focused Reliance Energy. Reliance is a private Midland based oil and gas company focused on developing upstream and midstream assets. The Company has over 100,000 net acres in the Permian Basin, including approximately 40,000 net acres in the prolific Northern Midland Basin.

Industry Indicators

  • The value of US nonresidential construction spending, a demand indicator for electric utilities, rose 2.2% year-to-date in October 2019 compared to the same period in 2018.
  • US personal income, which drives consumer demand for electric utilities, rose 4.4% in October 2019 compared to the same month in 2018.
  • The value of US residential construction spending, an indicator of demand for electric utilities, dropped 7.1% year-to-date in October 2019 compared to the same period in 2018.
  • Total US revenue for electric power generation, transmission and distribution fell 0.4% in the third quarter of 2019 compared to the previous year.

Posted by Roy Graham.

Read the Entire Energy 1st Quarter Newsletter Here

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