Terry Radney, Houston Partner and Co-Chair of Locke Lord’s Energy Practice Group, was quoted by The Texas Lawbook in an article analyzing Texas M&A in the first half of 2019. While merger and acquisition numbers were down overall, Radney noted that one area where he saw activity was around midstream assets, including water, as a way for oil and gas producers to bring in much needed cash, including divestitures and JV’s with investors. “The first half of the year was really about water, with producers looking to monetize their water assets,” he said.
Radney also weighed in on the outlook for M&A activity in the second half of the year and said higher oil prices at mid-year could spur more activity in the oil and gas sector, but he’s not wholly optimistic. He said, “With prices firming up some in the second quarter, we’ve seen a bit of a pick-up, but it’s still difficult to get deals done. The biggest factor is the capital markets. If they open up, the publics start to spend money and deal flow will increase. If that doesn’t happen, it’s going to be tough.”
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