Our Take: Recession Clouds Gather Over M&A

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Strong oil and gas prices are supporting E&P asset valuations and many energy companies have divestment agendas but Energy Intelligence sees heightened macroeconomic concerns continuing to slow upstream deal flow in the near term. M&A activity has been muted this year due to price volatility and geopolitical uncertainty following Russia’s invasion of Ukraine, as well as ongoing corporate capital discipline. The recession clouds gathering on the horizon do not offer an immediately positive outlook for upstream M&A but we see supply-side support for higher-for-longer prices bolstering valuations and deals in the medium term.

M&A, Corporate Strategy , Conventional Oil and Gas, Upstream Projects, Oil Prices
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