July 01, 2013
While REITs and pensions funds have been strong players this year in capital markets, other areas of the marketplace have been less active. Scott Cochlan extends his analysis of the oil and gas market this year in a recent Lexpert article on broader M&A trends in 2013. Below is an excerpt of the article.
Where big deals aren’t coming, however, is in Canada’s oil patch. “The oil and gas sector is at a virtual standstill,” says Scott Cochlan, co-head of the Calgary office of Torys LLP and the firm’s corporate and capital markets practice. Cochlan predicts a “conservative uptick” in deal work in the second half of the year, with liquefied natural gas a potential bright spot. “Low natural gas prices, which are coming back up, battered the balance sheets of lots of natural gas producers that are susceptible takeover targets and joint venture partners,” says Cochlan. “LNG is a big balance-sheet game, so there’s a lot of land-rich and cash-poor companies out there that might make willing partners for some larger entities that are going to be LNG participants. That’s one area where there could actually be increased activity.”
To read the full article, click here (subscription required).