Oil and Gas Sector Update - Americas – 1st Quarter 2019 Publication

or to bookmark this page

Click here to bookmark this page

Click here to remove bookmark

Oil and Gas Sector Update - Americas – 1st Quarter 2019

West Texas Intermediate (WTI) decreased by 40% over Q4-2018 and wiped out the entire gains of the year, ending with a loss of 24%. This negatively impacted the entire oil and gas sector (down 18.3%) over the year, especially affecting diversified Oilfield Services (OFS) (down 54.4%), drilling (down 41.9%), and offshore drilling (down 36.6%). Over the same period, the best performing sectors were equipment-focused OFS (up 20.1%) and diversified pipelines (up 3.2%). The average LTM revenue and LTM EBITDA multiples in 2018, for the oil and gas sector overall were 1.6x and 7.3x, respectively.

During Q1-2019, WTI rallied by 31.8%, returning to the same price level as January 2018. The oil and gas sector (up 19.1%) saw overall recovery over the past quarter. Except for refined products pipelines, every subsector performed positively. Best performers were diversified midstream (up 51.8%) and service-focused OFS (up 32.0%), while the worst performing sectors were refined products pipelines (down 14.6%) and offshore transportation (up 7.4%).

The M&A environment stayed positive, resulting in 12 M&A deals over the past quarter, where the average EV/Revenues and EV/EBITDA multiples were 5.5x and 11.2x, respectively.

For more detailed Q1 2019 trading multiples for individual oil and gas companies or for a more detailed view on potential acquisition target across the Americas please contact one of our professionals.

Oil and Gas Sector Update - Americas – 1st Quarter 2019 2019-06-13T04:00:00.0000000 /insights/publications/valuation/oil-gas-sector-update-americas-1st-quarter-2019 /-/media/assets/images/publications/valuation-advisory/oil-gas-sector-update-americas-1st-quarter-2019.jpg publication {B062D54C-1425-4A04-8F9F-95EA14068E6D} {E010DCD9-B7BA-4B98-9F3C-A51506B5C1D8} {5BF06FE7-E88C-4627-A701-3E042F076F1F} {65648E61-ED08-40DF-AEE6-DB90ABD49289} {C7EA9B07-9885-44FF-9E43-6BD207D93C03} {E340DC3D-D2B1-4B82-B060-39C0D241F859}

Other Areas We Can Help

Valuation Advisory

Valuation Advisory

Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.

Valuation Advisory
Valuation Services

Valuation Services

Objective valuations for financial reporting, tax and management planning purposes.

Valuation Services
Transfer Pricing

Alternative Asset Advisory

Provides an array of consulting services to alternative investment managers and investors.

Alternative Asset Advisory
Transfer Pricing

Portfolio Valuation

Alternative investment valuation for private equity and hedge funds.

Portfolio Valuation

Energy M&A

Energy and Mining expertise for middle-market M&A transactions.

Energy M&A

Insights

Transfer Pricing

Asia's Response to the COVID-19 Impact – Transfer Pricing Documentation, Benchmarking and APAs

Transfer Pricing
Transfer Pricing

Transfer Pricing Times – Third Quarter 2020

Transfer Pricing
Transfer Pricing

Non-Resident Taxation of German Registered IP Rights

Transfer Pricing