The Anatomy Of M&A: Why Effective Asset Integrations Bring Deals To Life

The momentum of total oil and gas M&A deals from the latter part of 2021 didn’t carry into 2022 as deal activity tapered off in Q1 2022, according to GlobalData statistics. In Q1 2022, the oil and gas industry saw $59 billion worth of deal volume, down by about 41% from Q4 2021. The upstream oil and gas sector contributed to the highest aggregate M&A transaction value of $21 billion in Q1 2022, driven primarily by the shale theme and strengthening commodity prices.

In this episode of E2B: Energy to Business, host Daniel J. Litwin caught up with Principal Byrony Coan to discuss why M&A activity is slowing so far this year compared to last, what goes into an asset transition, and what companies can do to prepare for M&A transitions going forward.

“The theme really has been consolidation,” Coan says. “People are trying to make sure their portfolios are focused in a particular area.”

Coan pointed to announced mega-deals in the quarter such as the merger of Oasis Petroleum and Whiting Petroleum, as well as subsequent deals such as Loredo Petroleum, a driller focused on the Eagle Ford Shale in South Texas, reportedly considering a sale of the company worth $1 billion; EP Energy having sold its Uinta Basin assets to Crescent Energy for $815 million; ExxonMobil selling its Barnett Shale assets to BKV Corp. for $750 million; Centennial Resource Development recently merging with Colgate Energy Partners III in a $7 billion deal; to name a few.

“I think a lot of people focused on the Permian Basin because of the logistics and getting things out of the Permian have now shifted back to other shale plays,” Coan says. “I think the interest beyond the Permian is a lot higher than it used to be.”

The upstream industry deals with asset and entity integration and requires plenty of moving pieces across the board. Often, companies flounder with communication between groups—people aren’t clear on how to navigate integration. Making it to the closing table is important but activities post-closing are critically important as Coan and her team often must help companies define who is doing what when a merger agreement is consummated.

“The people that negotiate the deal often aren’t clear what the TSA [transition service agreement] period looks like or who is going to be performing what services in an interim time,” Coan explains. “Getting that as defined as possible is huge.”

Thankfully, asset integration hasn’t changed much given the current macro environment the oil and gas industry currently faces.

“A lot of it has to do with how the assets have been historically managed, where they store the data, and how quickly can they get it transitioned from buyer to seller,” Coan says. “There are so many moving pieces across a lot of different areas in a firm.”

Follow us on social media for the latest updates in B2B!

Image

Latest

leadership
The Power of Purpose – Leadership and Vision with Byron Sanders
May 14, 2025

Welcome to this transformative episode of the Undisputed Podcast, where your host, Ty Bledsoe, CEO of Undisputed LLC, engages in a riveting conversation with Byron Sanders, a visionary changing the landscape of community leadership and public health. A former president and renowned CEO, Byron shares his journey from humble beginnings in Southern Dallas to reshaping…

Read More
democratize
AI in Education Can Democratize Expertise—But Only If Systems Evolve
May 14, 2025

As artificial intelligence becomes increasingly embedded in our everyday lives, AI and education are becoming more tightly intertwined. Many teachers and students are experimenting with AI in education, from personalized tutoring tools to automated lesson planning. While traditional edtech tools struggled to deliver on the promise of personalized learning, today’s generative AI appears poised to…

Read More
future of fiber
The Future of Fiber: Strategies and Collaboration
May 14, 2025

As next-generation broadband continues to transform digital experiences across the U.S., Internet Service Providers (ISPs) are reshaping how we think about infrastructure, speed, and scalability. The industry is no longer just about faster speeds—it’s about smarter service, tailored rollouts, and future-ready networks that can meet the evolving needs of homes, businesses, and communities. In this…

Read More
HVAC
The Evolution of HVAC Media Through the Eyes of Kyle Gargaro
May 13, 2025

The HVAC industry is no longer just about furnaces and air conditioners, and neither is HVAC media. It’s an ever-evolving ecosystem, shaped by technological advances, regulatory changes, and shifting workforce dynamics. With more than a century of history, publications catering to HVAC-related news, such as ACHR News, have played a crucial role in keeping…

Read More