Outlook for private equity energy investments after oil price collapse - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 51%

Deutschland Nachrichten Nachrichten

Deutschland Neuesten Nachrichten,Deutschland Schlagzeilen

Private-equity firms fueled the US shale revolution with $125 billion. Now they face a reckoning of epic proportions as the oil market melts down.

Layoffs, dividend cuts, and budget reductions: We're tracking how 18 oil giants from Equinor to Exxon are responding to the historic oil price meltdownSmall or midsize private-equity firms that specialize in backing oil and gas companies are most vulnerable to the collapsing oil markets, several sources said.

"There could be some question whether limited partners ultimately produce capital when it's called upon," said Michael Freeman, a partner at Haynes and Boone. "It certainly makes it much harder on the road to raise capital." In a statement, Riverstone said it has expanded its investments over the past decade to areas outside of oil and gas, including renewable energy, such as wind, solar, and biomass, where "demand is very strong and accelerating.

According to a person familiar with the matter, the firm is in the market to raise a fund devoted to renewable-energy projects including energy storage, wind, and solar. "To an extent, private-equity firms have the ability to be patient," Freeman said. "You might just see them sit and try to wait things out a little bit."

But even the giants may decide to move away from oil and gas in the future or focus their investments in midstream or downstream companies — which transport, store, and refine oil — as they are more likely to survive a downturn, according to other attorneys.The upside for oil-and-gas private equity is that if these firms have money to spend they could see steep returns if they play their cards right.

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.
Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 729. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Goldman Sachs shares 24 energy stocks set to grow when oil recovers - Business InsiderGoldman Sachs says now is the time to buy energy stocks — and reveals 24 companies that it's betting will thrive in an economic recovery yes buy cameconews an amazing Saskatchewan company that provides more energy than Saudi's do Oman_GC That is confirmed now, Goldman Sachs is shorting Energy stocks.
Herkunft: BusinessInsider - 🏆 729. / 51 Weiterlesen »

Top energy investor: The pandemic could fuel these 3 industries - Business InsiderThe CEO of a $681 million energy-investment firm says the coronavirus pandemic will give these 3 sectors a boost — but threatens to unravel one other
Herkunft: BusinessInsider - 🏆 729. / 51 Weiterlesen »

Real estate investment strategy from former software engineer - Business InsiderA former software engineer quit a 6-figure job and started investing in real estate full-time. He shares the popular 5-part strategy he's leveraging and exactly what he looks for in a deal.
Herkunft: BusinessInsider - 🏆 729. / 51 Weiterlesen »