The Eagle Ford Shale in South Texas led shale play deal-making in the second quarter, with mergers and acquisitions totaling $1.5 billion, PwC reported Tuesday.
In its quarterly survey of energy industry deals valued at more than $50 million, the accounting and consulting firm reported an overall drop over the April-June period of 2012. It attributed the decrease largely to companies’ efforts to integrate assets they bought during a deal-making flurry in 2012, and to “fully priced” offerings by sellers.
“We are seeing dealmakers go deeper and broader in their diligence to assess whether current deal valuations can deliver long term value,” said Doug Meier, PwC’s U.S. energy transactions and deals leader, in a news release from the firm.
He noted, however, that “interest from potential buyers in acquiring quality assets continues.”
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In the U.S. shale plays, where new technology has pushed a production surge, the Eagle Ford’s three $50-million-plus deals totaling $1.5 billion led the pack in the second quarter, followed by the Bakken Shale in North Dakota with two big deals totaling $910 million and the Marcellus Shale in the Northeast with three deals totaling $416 million, according to PwC.
Overall, PwC counted 39 oil and gas deals with values greater than $50 million in the second quarter, with total value of $17.2 billion.
That compares with 53 deals worth $30.4 billion in the second quarter of 2012, the firm reported.
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