New Investments Increased In Oil and Gas Industry In Q3 2012

Thursday 15 November 2012, Amsterdam

New investments in oil and gas companies, including financing through equity offerings, debt offerings, private equity and venture financing, registered an increase of 15% in the number of deals and 17% in deal value with 419 deals worth $104.6 bn in Q3 2012, as compared to 364 deals worth $89.2 bn in Q2 2012. In total, 25 high value deals of greater than $1 bn each contributed around $39.1 bn to total deal value in Q3 2012.

The majority of capital raising was done through the issuance of debt instruments that accounted for 77% of the investment with $80.6 bn in Q3 2012, followed by equity offerings with $16 bn. In terms of the number of deals, equity offerings were at the top, accounting for 49% of the total deals with 207 deals in Q3 2012, followed by debt offering deals with 133 deals.

Sete Brasil’s $3.55 bn private equity financing, China National Petroleum and PetroChina’s separate public offering of notes for $3.2 bn each, PTT Exploration and Production’s public offering of shares for $3.1 bn, and Snam’s private placement of 3.875% bonds due 2018 for $1.92 bn were some of the high-value transactions recorded in Q3 2012.

The upstream energy sector recorded the highest number of deals and deal value with 279 deals in Q3 2012, followed far behind by midstream energy sector with 84 deals. Deal value in upstream sector was around $55.6 billion in Q3 2012, followed closely by midstream sector with $54 billion. In terms of average deal value, the midstream recorded much higher value with $580.3m in Q3 2012, as compared to average deal value of $205.5m in the upstream sector.