Oil Industry Slump May Herald Takeover Wave - Bloomberg

The oil and gas industry’s worst slump since the financial crisis heralds a surge of takeovers for Goldman Sachs Group Inc. and Sanford C. Bernstein Co. as Asia buyers put $150 billion in cash to work.

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The market valuation of U.K. and North American exploration company reserves has dropped 23 percent this year to the lowest since 2008, Bloomberg data shows, while Brent crude prices gained 8 percent to $102 a barrel. The dislocation between crude and company valuations is “extreme” and may lead to twice as many deals as usual, Goldman said last month. U.K.’s FTSE All-Share Oil & Gas Producers Index rose 4.3 percent as of 8:42 a.m. in London, compared with a 1.1 percent gain for the FTSE 100. Afren Plc, an explorer in Africa and Iraq, rose 4.5 percent, bringing its two-day gain to 10 percent, while Tullow increased 2.4 percent today.

Oil Industry Slump May Herald Takeover Wave - Bloomberg