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May 17, 2016

By Annie Hall

70% record fall in global oil & gas M&A

Global oil & gas M&A totals $45.3bn in 2016 YTD, down a year-on-year record 70% from the record high last YTD ($149.9bn) and is the lowest YTD volume since 2004 ($38.5bn). Global oil & gas M&A in full year 2015 ($347bn) was the was second highest on record, behind $368bn in 2012

US targeted oil & gas M&A stands at $26.5bn, the lowest YTD volume since 2009 ($14.9bn), and is down from the YTD record high of $68.4bn in 2012 YTD. The US accounts for 59% of global oil & gas M&A in 2016 YTD, ahead of Canada (17%) and Russia (5%)

$51.5bn record value of withdrawn oil & gas M&A

Global withdrawn oil & gas M&A totals a record $51.5bn in 2016 YTD, after Haliburton withdrew its $35.5bn bid for Baker Hughes. The deal is largest withdrawn M&A bid in the oil & gas sector on record, ahead of NK Yykos’ withdrawn $22.6bn bid for Sibneft in 2003. The Baker Hughes deal is the fourth largest withdrawn deal across all sectors so far this year

Global withdrawn M&A is the highest YTD volume ($491bn) since 2007. US targeted withdrawn M&A totals a YTD record $396bn in 2016 YTD, ahead of the previous YTD high in 2007 YTD ($138bn), and is already at an annual record in 2016 YTD

80% fall in exploration & development M&A

Global oil & gas – exploration & development subsector M&A totals just $16.0bn in 2016, the lowest YTD since 1998, and is down 80% from the record $81.4bn in 2015 YTD. The largest exploration & development deals so far this year is Range Resources’ $4.4bn all stock bid for Natural Gas Partners backed Memorial Resources Development in the US

RBC tops oil & gas M&A advisor ranking

RBC leads the global oil & gas M&A advisory ranking in 2016 YTD with $8.9bn, followed by Mizuho and Goldman Sachs, both with $6.1bn