The number of whole-company and minority-stake deals in the oil and gas industry declined year over year from 40 to 35 in June.
Despite the decline in the number, the combined value of deals increased to $12.39 billion from $8.49 billion, driven by the largest deal in the year so far, according to S&P Global Market Intelligence data.
Twenty-eight asset transactions were announced in the sector in June, compared to 42 in the year-ago period. Their aggregate value dropped to about $1.69 billion from $6.85 billion.
Large whole-company and minority-stake deals
The Harold Hamm family trust's acquisition of 17.43% of Continental Resources Inc. for about $4.83 billion was the biggest whole-company and minority-stake deal announced in June and the biggest deal of the year so far. The Hamm family was willing to pay $70 per share, representing a 9% premium to the closing price of the common stock on June 13; an 11% premium to the volume-weighted average price of the stock over the last 30 trading days through June 13; and a 21% premium to the volume-weighted average price of the stock traded during 2022.
The second-largest whole-company and minority-stake deal in June is Targa Resources Corp.'s purchase of Lucid Energy Delaware LLC for $3.55 billion. Targa Resources expected to close the deal in the third quarter.
The third-largest whole-company and minority-stake deal for the month amounted to $1.46 billion. Under the deal, Whitecap Resources Inc. will buy XTO Energy Canada.
Before the deal was struck, Whitecap Resources President and CEO Grant Fagerheim said in a conference call that the company will seek acquisitions. "Whitecap's strategy of moderate growth — 3% to 5% per year per share, enhanced by strategic acquisitions — has been very successful to date, and we will continue to look for opportunities to enhance shareholder returns," Fagerheim said.
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Notable asset deal
The largest asset deal for the month and the sixth-largest asset deal in the year so far was a transaction between Devon Energy Corp. and RimRock Oil & Gas LP totaling $865 million. Devon Energy bought leasehold interest and related assets in the Williston Basin. Devon planned to increase its fixed quarterly dividend by 13% once the deal is completed.
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