“3 Biggest Energy M&A Trends In 2019: Midyear Report”
Diverging fortunes within the oil and gas industry and improving fortunes in the renewable energy industry are the story of energy deal-making so far in 2019.
…The activity of private equity firms like Blackstone and Stonepeak on the buyers side of the ledger, as well as the PE backers of Oryx on the sellers side, shows how PE investment in the midstream sector has driven deal activity, attorneys say.
“[It’s] partly because the private equity model is not to simply build-and-hold, and build a business around,” said Hunter White, who chairs Thompson & Knight LLP’s energy industry group. “Their typical models, they want to invest and have a three-to-five-year exit strategy. And that just lends itself to more activity on the M&A side.”