18 Nov, 2021
Oil, gas deal tracker: Deal values plunge in October despite major pipe deals
By Tim Siccion and Annie Sabater
Oil and gas M&A dealmaking and their respective transaction values in October fell from year-ago levels, even as midstream companies continue to bolster their positions with billion-dollar deals, according to S&P Global Market Intelligence data.
The industry announced 37 whole-company and minority-stake deals in October 2021, compared to 38 in October 2020. Despite some significant acquisitions during the month, the combined value of deals plummeted to $12.96 billion from $34.88 billion year over year.
The number of announced asset transactions plunged by nearly half to 24 from 44 in the same period, and their aggregate value fell from about $2.81 billion to about $1.32 billion.
Southwest Gas Holdings Inc. in October agreed to acquire Dominion Energy Inc.'s Questar Pipeline Co. in a deal valued at $1.98 billion — one of the biggest North American whole-company and minority-stake transactions announced that month.
Activist investor Carl Icahn, who has a substantial holding in Southwest Gas through entities he controls, opposed the deal. Icahn recently forwarded a list of 10 nominees to replace Southwest Gas' board as he attempts to take over the gas utility. Executives at Southwest Gas are considering selling a stake in its subsidiary Centuri Group Inc. to fund the Questar acquisition, which Icahn may support if Southwest Gas sells its stake at a price not lower than $500 million.
Another large deal announced during the month is Crestwood Equity Partners LP's $1.83 billion merger with Oasis Midstream Partners LP. The merger is expected to create one of the top three midstream operators in the Williston Basin with a pro forma enterprise value of roughly $7 billion.
Crestwood said the deal is well aligned with its "strategy of consolidating high-quality midstream assets in [its] core operating areas" as it augments the company's positions in the Williston and Delaware basins. The companies expect the deal to close in the first quarter of 2022.
