FINANCIAL VS TRADE BUYERS – DEAL VOLUME

0

5

10

15

20Financial Buyers

Trade BuyersUSDbn

NATURAL RESOURCES & UTILITIES M&A LANDSCAPE

OIL & GAS – M&A VALUES

0

100

200

300

400

500USDbn

GLOBAL M&A ACTIVITY

CONSEQUENCES OF NRU SECTOR LIQUIDITY SQUEEZE

TOP FIVEBIGGESTBANKRUPTCIES

$2.8BILLION

$3.9BILLION$2.9

BILLION

$4.3BILLION

$5.3BILLION

PACIFICEXPLORATION &PRODUCTION

SAMSON RESOURCES

ULTRAPETROLEUM

SABINEOIL & GAS

ENERGYXXI

CHINA INVESTMENTLOWER THAN EXPECTED NRU M&A ACTIVITY 2014/15

Sellers’ prices based on internal expectations

Lack of buyer/seller value consensus

Buyers waiting for market bottomLOW M&A ACTIVITY

EUROPE V REST OF WORLD – 1H2015

40%RoW

60%Europe

TOP 2 REASONS FOR DIVESTMENT56% were driven by theneed to refocus on corebusiness activities

15% were motivated bymarket changes

TREASURY INTEGRATION OPTIONS

QUALITY OF OUTCOME56% 15%

Lift and shiftSimpleintegration

Simple integrationwith improvement

RISE OF DOMESTIC DEALVOLUMES IN MENA

MENA M&A TRENDS 2014-16

21Q1 2015

30

Q1 20160

3000

6000

9000

12000

15000

Q1 2016Q4 2015Q3 2015Q2 2015Q1 2015Q4 2014Q3 2014Q2 2014Q1 2014100

150

200

1214,529 10,880 6,287 12,850 5,997 6,498 10,572 10,238 6,998

117132

152 148

183 185

161 163

Deal Value (USDmn)Deal volume

ASIA

EUROPE

MENA

1Other category consists of deals completed by Asia, Russia and South/Central America

M&A REGIONAL VIEWPOINT

OIL & GAS UPSTREAM DEALS1H2016

Canada29 DEALS (21%)

Other1

18 DEALS (26%)

DRIVERS FOR POST– LIQUIDITY & CASH MANAGEMENT

Treasury policy compliance

CASHVISIBILITY

US

US72 DEALS (45%) Need to pay down

M&A debt funding

Operational risk Fraud/control risk

Europe13 DEALS (7%)

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