Lessons from the stifling of energy shipments through the Strait of Hormuz are likely to drive M&A activity in the oil and gas industry, says Macquarie. It expects producers of LNG to be particularly sought after. "Oil price normalization presents new opportunities for acquirers," Macquarie says. It notes Australia's Santos trades at a 14% discount to the mid-2025 offer from a consortium led by Abu Dhabi National Oil Co. unit XRG. "Any new approaches must be at a higher level now," Macquarie says. Santos is due to report 2Q metrics this month. Macquarie forecasts 2Q output of 23.7 million barrels of oil equivalent, slightly below consensus expectations for 24.3 million barrels. Quarterly revenue is projected to be US$1.55 billion. Santos ended Wednesday at A$7.19. (david.winning@wsj.com; @dwinningWSJ)
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Santos Could Become M&A Target Again After MidEast Lessons Learnt — Market Talk
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Lessons from the stifling of energy shipments through the Strait of Hormuz are likely to drive M&A activity in the oil and gas industry, says Macquarie. It expects producers of LNG to be particularly sought after. "Oil price normalization presents new opportunities for acquirers," Macquarie says. I…