Dismantling the dinosaurs: A look at U.S. M and A trends

Current trends in the oil and gas merger and acquisition (M and A) marketplace suggest that business as usual isn't usual anymore. Are these trends the harbinger of bad tidings? Will the industry collapse continue to take on dimensions of a full scale implosion, or are we sitting on the brink of the next boom? What we know at this point is that the dinosaurs-the short-sighted, the bloated, the arrogant, the unchanging-are going extinct. Companies are disappearing. Survivors are turning lean and flexible. The industry isn't just changing; it's evolving a new breed, with M and A activity a bridge between the old and the new. The current state of the industry is shocking. We all know that drilling activity is at its lowest level in 4 decades. That is why acquisitions are the only game in town and why the acquisition business is booming. If drilling activity is down about 25%, that is small beans compared with acquisitions, which are down 50-70%