After a fairly abysmal 2019 for U.S. energy mergers and acquisitions, investors are signaling to oil executives and investment bankers that the days of big-premium deals are over.
Some of the year’s most notable mergers, including Occidental Petroleum Corp.’s blockbuster takeover of Anadarko Petroleum Corp., were met with investor criticism and the sustained selling of the acquirer’s stock. Shareholders are demanding more discipline on spending from oil and natural gas producers after years of negative cash flow and disappointing returns that have left the sector out of favor.
