For 51 consecutive quarters, energy was the dominant sector for M&A in Texas. That streak ended during the first three months of 2020, as M&A activity plunged in deal value to levels not witnessed since the Great Recession. Not one of the seven biggest-dollar Texas deals had anything to do with oil and gas, according to Mergermarket. The Texas Lawbook has the details.
First quarter global M&A activity fell back to levels not seen since 2013 with U.S. results eerily similar to 2008. Meanwhile, dealmaking involving Texas lawyers keeps chugging along thanks to transactions already in the works and some companies’ moves to shore up liquidity.
Oilfield services providers followed with 204 bankruptcies over the last five years and midstream providers amounted to 30, according to Haynes and Boone. But few in the oil and gas industry will be immune given low oil prices and uncertainty around the demand-sapping coronavirus.
The results contrast with Haynes and Boone’s fall survey, which found the largest share of respondents predicting a 10% decrease during redetermination season.
Preliminary data shows that global deal value slid 28% in the first quarter, with private equity firms making up a bigger chunk. Texas dealmakers haven’t been immune, although last week saw flat activity year-over-year with deal closings, restructuring work and private equity reloading to hunt for opportunities.
The new shareholder has in-house experience, including as general counsel at private equity-backed Northern Star Generation.
Exclusive data collected by The Texas Lawbook’s Corporate Deal Tracker shows that transactions handled by lawyers in the state dropped by a quarter on a volume and value basis last year, thanks to the unpopular oil and gas sector. And 2020 is expected to be much worse given the coronavirus, uncertainty in the financial markets and low oil prices.
Simpson Thacher picks up a former Blackstone managing director while a Texas utility brings on a Kirkland associate as general counsel.
Two big transactions involving Texas lawyers helped move the value needle last week, despite shaky-looking deals in the rest of the M&A world thanks to the coronavirus.
Dealmaking among Texas lawyers was way down this past week, thanks to the spreading coronavirus and sliding oil prices. But transactions were already sickly even before the recent COVID-19 fears. Claire Poole explains.