Energy M&A is Booming

The energy sector (NYSE:XLE) is booming with merger and acquisition activity.

Market conditions, a rising interest in shale gas exploration (NYSE:OIH), attractive valuations, and the growing need for energy infrastructure makes this sector appealing and it is likely to remain so for awhile.

With a record-breaking number of M&A activity in 2010 with 1,171 deals worth $322 billion, according to Dealogic, the frenzied pace has continued this year with $211 billion in 1,508 mergers to-date.

Charles Perry, chief executive officer of energy-consulting firm Perry Management said of the current space,

“Capital is available, either as equity, cash reserves or some borrowed funds,” he said. Plus, the assets are going for reasonable prices and “investors are looking for growth investments after two years of a stagnant market for equities.”

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