The Iran war has brought US oil and gas dealmaking to a standstill after a strong start to the year as volatile crude prices make it difficult to price transactions. The predicament has come ahead of CERAWeek in Houston, traditionally the industry’s busiest dealmaking event.
“Buyers were excited before. There is some dry powder out there with potential buyers that are looking for assets,” Bracewell’s Austin Lee told the Financial Times.
“Now it’s a matter of ‘OK, what do we price this at? How aggressive can we underwrite this? Are we going to be able to hedge?’” Lee added. “There are dynamics that need to settle out before we expect there to be less of a spread between sellers and buyers.”
