E&P sector weighs mergers against buybacks

摘要

New York-While larger exploration and production companies may sense a unique opportunity for acquisitions in the current economic turmoil, smaller firms are looking more toward share repurchase programs and other balance sheet-enhancing moves, speakers at a Platts conference in Houston said November 17. "Global financial turmoil and declining commodity prices have had an adverse effect on valuation of E&P assets," said Keith Behrens, managing director of Energy Capital Solutions. Behrens, speaking to the Platts Oil & Gas Acquisition and Divestiture Conference, said that some M&A activity will continue to take place despite the adverse merger market conditions.