Haynes and Boone, LLP Partner Austin Elam was quoted in a Law360 article discussing energy deal trends in 2022.
Below is an excerpt:
There's one word that sums up the past year of energy dealmaking: uneven.
Plenty of mergers and acquisitions got done in 2022, but attorneys say geopolitical and economic turmoil created choppy waters for both oil and gas and clean energy companies.
Oil and Gas Securitization Deals Pick up Pace
With lenders still reluctant to sink new money into oil and gas development, one way that companies have been increasingly able to raise investor cash is by packaging their actively producing oil and gas wells into securities. The oil and gas production of the securitized wells is hedged to guard against major price swings and offer long-term price certainty.
The oil and gas securitization trend is a few years old, but attorneys say it has gathered steam this year.
"I don't think it was ever a novel structure, but there was a lack of familiarity," said Austin Elam, who co-chairs Haynes and Boone, LLP's oil and gas practice group. "They're getting done at a higher clip and faster than they were done earlier this year."
Excerpted from Law360. To read the full article, click here.
Below is an excerpt:
There's one word that sums up the past year of energy dealmaking: uneven.
Plenty of mergers and acquisitions got done in 2022, but attorneys say geopolitical and economic turmoil created choppy waters for both oil and gas and clean energy companies.
Oil and Gas Securitization Deals Pick up Pace
With lenders still reluctant to sink new money into oil and gas development, one way that companies have been increasingly able to raise investor cash is by packaging their actively producing oil and gas wells into securities. The oil and gas production of the securitized wells is hedged to guard against major price swings and offer long-term price certainty.
The oil and gas securitization trend is a few years old, but attorneys say it has gathered steam this year.
"I don't think it was ever a novel structure, but there was a lack of familiarity," said Austin Elam, who co-chairs Haynes and Boone, LLP's oil and gas practice group. "They're getting done at a higher clip and faster than they were done earlier this year."
Excerpted from Law360. To read the full article, click here.
