The drastic events in the energy industry over the past two years have created concerns that put the future existence of some companies in doubt. At times like these, considering M&A energy proposals just to survive become more prevalent in this industry.
The merger component can help save struggling businesses in this area. However, the acquisitions may need the assistance of an energy investment banker to alleviate a potential cash flow problem when it comes to obtaining the necessary money to fund the transaction.
Amid such concerns, debate over whether an oil glut exists, the ramifications of Brexit vote and the surge of bankruptcies during this two-year time frame are all fodder for those M&A energy questions that develop.
When looking at the situation from a positive perspective, the oil slide has effectively bottomed out. That analysis is based on looking at how prices for a barrel of oil have risen from the depths of the high $20’s to the current mid-$40’s range.
Stock market indicators and rig counts as a rough gauge of the future could mean that prices will start to tick upward in the next few months. In the latter case, that’s based on a lag between the bottoming out in this category (which happened in May) followed by a rig count increase.
More conservative estimates when attempting to discern prices for next year are hinting at perhaps the low $50’s, though more optimistic sentiments see rapid rises to as much as $80 per barrel.
Navigating an M&A energy deal can often be a complicated process, which is why the need for an experienced energy investment banker like Wilcox Swartzwelder & Co. is so important. Contact us today.
View the full presentation here: Energy Industry: Where Do We Go From Here
Follow us on LinkedIn and stay up to date on the latest news & industry trends
102 Decker Court, Suite 204
Irving, Texas 75062