The world of oil and gas is ever changing. We’re constantly making advancements in technology and equipment to improve the efficiency and safety of the work that we do. There are, of course, relocation of wells and pipelines, but perhaps mergers and other changes of ownership for industry champions are more prominent. Let’s talk about these big mergers in oil and gas a little bit more.
U.S.-Based Oil Companies
The last ten years have consisted of many big U.S. players merging and acquiring larger assets. This is good business for Tiger General, and you. American oil is good work. Here are a few of the top mergers to come about in recent years.
In 2014, Kinder Morgan acquired El Paso Pipeline Partners, Kinder Morgan Energy Partners and Kinder Morgan Management for $76 billion.
This forged one of the largest energy infrastructure companies in North America. The enterprise value of the merger is estimated around $140 billion. Now Kinder Morgan has a lead position in each of its various segments because it consolidated four of its individually-traded equity securities.
In 2018, Energy Transfer Equity (ETE) acquired Energy Transfer Partners (ETP) for $60.4 billion.
This merging of subsidiaries was made possible under a unit for unit exchange scheme. The goal of this merger was to reduce complications in the operation structure and be financially beneficial to both ETE and ETP.
Slated for late 2019, Occidental Petroleum will acquire Anadarko Petroleum for $57 billion.
For now, the deal is only a definitive agreement but is set to be one of the highest-value mergers of the decade in American gas and oil. The transaction is pending approval of shareholders and regulatory bodies. Once combined, the new entity will have an enterprise value of over $100 billion and a diverse portfolio of conventional and unconventional, midstream and chemical assets. Occidental will hold the majority in a 71/29 stakeholder split.
Foreign-Based Oil Companies
Saudi Arabian Oil Company (Saudi Aramco) will acquire Saudi Basic Industries Corporation for $69.1 billion.
The share purchase agreement allots a 70% interest rate in Saudi Basic Industries Corporation from the Public Investment Fund of Saudi Arabia. The additional 30% comes from publicly-traded shares, which Saudi Aramco will leave on the table.
Part of Saudi Aramco’s long-term strategy, the acquisition strengthens the company’s downstream portfolio. They intend to increase refining capacity upwards of eight to ten million barrels per day by 2030.
In 2016, Royal Dutch Shell acquired the BG Group for $54.03 billion.
A combined strategy, the transaction required $19.03 billion in monetary payment and $34.05 billion in shares. This was part of their long-term plan to create an operational structure that’s both better focused and less complex. The goal was to take advantage of upstream/downstream cash engines and deepwater and liquefied natural gas.
In 2015, Enbridge Income Fund acquired Enbridge Pipelines (Athabasca) and Enbridge Pipelines for $30.4 billion.
This acquisition included an equity consideration of $18.7 billion and debt assumption of $11.7 billion. Together these Canadian-based companies comprise the Canadian Liquids Pipelines business and the Canadian renewable energy assets. With a hand in the transportation of crude oil and bitumen from oil sands projects to Edmonton and Hardistry in Alberta, they now have a diverse energy infrastructure portfolio with both transportation and storage assets.
Tiger General Helps You Work the Fields
As valuable as it is to keep up with the big names in the ownership business, you need to work the fields regardless of who owns them. That’s where Tiger General’s superior equipment sales and services comes in handy. Check out our website to see what we have to offer, or fill out the Tiger General Truck Inquiry Form to get started on bringing your next piece of equipment to where it’s needed most.