Dam Holding Back Energy Dealmaking Will Burst by 2016, Energy Bankers Say
The oil and gas sector could see some big M&A toward the end of this year or the beginning of 2016, said panelists at the Mergermarket Energy Forum in Houston last week.
Price stability, at any level, will be the main catalyst for both buyers and sellers to make a move, said Lori Lancaster, managing director, UBS.
Deals can get done regardless of whether the recovery in oil prices is a “V,” “W,” or “U,” but what is needed is stability, said Stephen Trauber, vice chairman and global head of energy, Citi.
If the recent upswing in commodity prices represents the middle of a “W” with another downturn afterward, it may take until late 2015 or early 2016 for companies to gain confidence. “Nobody wants to look dumb” by buying or selling at the wrong time, said Trauber.