The U.S. could be set to reemerge as a major world oil exporter, a shift evidenced by this year’s first unrestricted export of American oil to a non-North American country in almost 40 years, as reported by The New York Times. Accordingly, we wanted to take a closer look at PE investment in U.S. companies involved in oil exploration, production and refining in the PitchBook Platform.
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Activity this year has lagged slightly but valuations are up, with a decade-high 77% of completed transactions valued at $100 million or greater. Higher prices could have contributed to the slight decline in activity, as could renewed competition from strategics while the U.S. oil & gas production boom continues. As the U.S. faces a possible shift to exporting, it will be interesting to see whether PE firms shift geographic focus, particularly if competition pushes prices even higher. Of the investors that completed 550+ PE deals since the start of 2005, EnCap Investments and Kayne Anderson Capital Advisors have been most active (52 and 51 deals, respectively).
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