Large-scale oil and gas M&A deal-making tapered off significantly in November following a tidal wave of consolidation activity in October.
During the month, the sector announced 32 whole-company and minority-stake deals, which compared to 34 in November 2019. The combined value of the November 2020 deals rose year over year from $3.07 billion to $4.86 billion, but still fell far short of October's $32.14 billion.
The aggregate value of announced asset transactions increased over 100% from $443 million to $1.00 billion, and the number of deals rose from 15 to 23.
Riverstone Holdings LLC's $2.69 billion acquisition of bulk liquid storage and terminal facilities operator International-Matex Tank Terminals Inc. from Macquarie Infrastructure Corp. was the biggest deal announced in November. In October 2019, MIC announced that it was pursuing strategic alternatives, including the sale of the company or its operating businesses, to unlock value for shareholders.
The second-largest transaction announced in November was Fifth Creek Energy Co. LLC's sale of oil and gas exploration and production firm HighPoint Resources Corp. to Bonanza Creek Energy Inc. for about $755.6 million. The companies agreed to launch a registered exchange offer and consent solicitation along with a solicitation of a prepackaged Chapter 11 reorganization plan for HighPoint.
The exchange offer will be conditioned on a minimum participation of 97.5% of HighPoint's senior unsecured notes. If the minimum participation condition is met, the exchange offer will push through, and Bonanza will acquire HighPoint outside of Chapter 11. If the minimum participation condition is not met, HighPoint will file for Chapter 11 to execute the reorganization plan and complete the transaction.
In other activity, BWC Terminals LLC's acquisition of NuStar Energy LP's Texas City storage terminals for $106 million was the largest North American asset-level deal announced in November.