The Consolidation of Oil & Gas in 2023

Private equity firms have traditionally shown a strong interest in the energy sector, with a focus on buying second and third generation owners of businesses. These businesses often have strong established track records and a proven business model, making them attractive targets for private equity investment.
One popular area for private equity investment in the energy sector is the oil and gas industry. This includes companies involved in exploration, production, and refining of oil and gas. Private equity firms have also been known to invest in oilfield services companies, which provide equipment and services to the oil and gas industry.

Oil and Gas Generational Shift

The oil and gas industry is undergoing a shift as 2nd and 3rd generation family-owned businesses look to private equity for liquidity or strategic capital. We predict that this trend will continue over the next 18 months as oil and gas owners seek new opportunities while looking to exit their businesses.
The influx of private equity into the sector has already begun in earnest, with 2018-2021 seeing record levels of M&A activity in the space. Going forward, we expect to see continued consolidation as firms look to capitalize on scale efficiencies, capitalizing on opportunities created by changing technology and customer preferences.
Ultimately, these trends present exciting times for both buyers and sellers in the oil and gas industry. With increased access to capital and new potential partners, it’s an excellent time for seasoned professionals to consider selling their operations or even beginning a succession plan. For those organizations looking to buy, there are many options available – from independent oil & gas operators to large private equity firms – resulting in a pool of assets ripe for investment.

Oil and Gas in 2023

In 2023, we predict that the oil and gas industry will continue to undergo consolidation as firms look to capitalize on scale efficiencies. Additionally, changing technology and customer preferences will create new opportunities for private equity firms to invest in.
Another area of interest for private equity in the energy sector is the renewable energy space. This includes companies involved in the production of energy from sources such as solar, wind, and geothermal. Private equity firms have been investing in companies that develop, construct, and operate renewable energy projects, as well as companies that manufacture components for these projects.
In addition, private equity firms have also been investing in the energy infrastructure space, such as companies that own and operate pipelines, storage facilities, and transmission assets. These investments provide a steady stream of income, making them attractive to private equity firms.
Overall, private equity firms are looking for companies in the energy sector that have a strong and proven business model, a track record of success, and growth potential. These investments can provide attractive returns for the private equity firms and support the growth and development of the energy sector.

The Future

As we move into the future, now is the time to take advantage of these trends if you’re either looking to buy or sell an oil & gas business.
With increased access to capital and new potential partners, it’s an excellent time to consider selling your operations or even beginning a succession plan.
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Author: Waldon Fenster
Waldon Fenster is an experienced chief executive officer with a demonstrated history of working with startups to create multi-million dollar companies. At his core Waldon is a startup expert and corporate acquisition consultant with an expertise in facilitating brand growth for businesses that want to present their company to the marketplace. Waldon has worked with thousands of companies and Fortune 100 brands to expand their business models and amplify their portfolios for immediate financial benefit. He has deep knowledge and experience in capital, strategy, sales, procurement, systems development, and start-up ventures. Currently Waldon focuses on top level work, where he can build small businesses and emerging startups from the ground up, to make them attractive to outside investments and acquisitions on a global scale. Waldon holds Bachelor Degrees in Business Management & Marketing from the University of Wyoming along with Associate degrees in Service Management, Decision Science and Finance.

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