Sector Snap: Energy Firms Seen as M&A Targets

"Deals of $8B–$13B could transpire every quarter through year-end 2011."

Shares in energy companies involved in oil and natural gas services fell on Monday after an analyst said the sector is ripe for continuing consolidation.

Merger and acquisition (M&A) deals in the sector began to ramp-up in 2010 and surged the first three months of the year, says Citigroup Global Markets Analyst Robin Shoemaker.

Now, rising oil prices are setting the stage for more transactions, Shoemaker says in a research note on Monday, arguing that oil prices are the most reliable leading indicator of consolidation in the sector.

Nine transactions with a total value of $13 billion took place in the first quarter, including Ensco PLC's proposed acquisition of Pride International for $8.7 billion.

That's up from $7.3 billion in the fourth quarter and $3.4 billion in Q310.

Shoemaker estimates that $8–$13 billion in deals could transpire each quarter for the rest of this year. The analyst anticipates more stock deals than cash deals.

Among the energy services companies Shoemaker sees as the most likely takeover targets this year are Weatherford International Ltd., Dresser-Rand Group Inc., FMC Technologies Inc., Superior Energy Services Inc., Helmerich & Payne Inc. and Rowan Cos. Inc.

Without a strong turnaround this year, Weatherford could opt to put itself up for sale and would be an attractive takeover candidate for multiple potential buyers, Shoemaker wrote.

Shares in Weatherford and the other energy companies slipped Monday amid an overall market decline following Standard & Poor's warning that it might lower its rating on U.S. government debt because of the mounting budget deficit.

Oil & Gas Company to Acquire Hydrogen Tech Firm's Assets
Source: Streetwise Reports (01/26/2021)

Jericho Oil will gain the acquiree's award-winning, patented, zero-emissions Dynamic Combustion Chamber boiler.

High Performance Energy Storage Company Posts 132% Increase in Yearly Revenue
Source: Streetwise Reports (01/24/2021)

Eguana Technologies reported financial and operating results for FY/20 that demonstrated substantial improvements in both revenue and gross margins.

Option Partner to Continue Operations at Energy Firm's Texas Oil & Gas Project
Source: Streetwise Reports (01/23/2021)

The efforts will meet Torchlight Energy Resources' development requirements at Hazel.

Company Accelerates Development and Deployment of Solar Projects
Source: Streetwise Reports (01/15/2021)

UGE International provided an update on its project and corporate activities during Q4/20.

Ballard Receives Order for Scotland’s First Fuel Cell-Powered Train
Source: Streetwise Reports (01/12/2021)

Shares of Ballard Power Systems traded 18% higher to a new 52-week high after the company reported that it had received an order from Arcola Energy for its FCmove-HD fuel cell modules that will be used to power Scotland's first fuel cell-powered train.

Solar Energy Company Secures Bid to Build Additional 5.4MW DC Community Solar Project
Source: Streetwise Reports (01/06/2021)

UGE International reported that just prior to year-end 2020 it secured a contract to build a new US$9.9 million, 5.4MW DC community solar project in the State of Maine.

Target Price Raised on Energy Firm Making 'Transformative Acquisition'
Source: Streetwise Reports (01/06/2021)

The terms and benefits of Earthstone Energy's purchase of an oil and gas company, an "eye-catching act of deal making," are presented in a ROTH Capital Partners report.

This Tiny Tech Stock Is Quietly Building a Huge Business in Air Quality
Source: Matt Badiali for Streetwise Reports (01/05/2021)

Independent financial analyst Matt Badiali discusses how mCloud's technology is making it possible for office buildings to reopen during the pandemic.

Clean Energy Fuels Partners with Total SE to Develop Carbon-Negative RNG Production Facilities
Source: Streetwise Reports (12/22/2020)

Shares of Clean Energy Fuels Corp. traded 23% higher to a new 52-week high price after the company reported it is entering into a $145 million 50-50 joint venture with Total SE of France to develop carbon-negative renewable natural gas production facilities in the U.S.