Mon, Sep 16, 2019

Jim Rebello in Hart Energy Discussing the Divestment Movement in the Oil and Gas Industry

Jim Rebello, Head of Duff & Phelps’ Energy M&A Advisory practice, shared his views with Hart Energy on factors impacting the overall health of the oil and gas industry. The article focuses on factors contributing to the divestment movement in fossil fuels, it’s impact on companies and what this means for the financial health of the industry.
Illustrating the impact of divestment on the industry, Jim explains, “A few months ago, they were talking about the allocation of institutional investors to energy in the Fortune 500 is at a 20-year-plus low. There’s a lot of capital that’s not interested in the energy industry. There are two primary reasons for this. One is that when people compare returns in energy against other sectors of the economy, they see an underperformer. And then this whole movement away from fossil fuels.”
Jim states, “I think management teams would rather have access to capital with a vocal investor vs. no capital. If you have capital and you’re in an uncertain environment, that puts you in a much better position to capitalize on opportunities going forward. The energy M&A market will likely improve; it always has.”

Subscribers can read the full article here.

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