Higher Oil Prices Are Holding Back Some Deals, Says M&A Lawyer Spottswood

• Volatility in oil prices has become the 'new normal' for energy M&A, with dealmakers adapting and continuing talks despite challenges in cash pricing.
• A sustained period of higher oil prices would significantly boost energy M&A, leading to healthier companies, increased investment, and more aggressive buyers.
• The current regulatory landscape is perceived as more friendly towards large-scale energy development and less cynical about consolidation compared to the previous administration, potentially accelerating deal flow.

Lande Spottswood, an M&A and capital markets partner at Vinson & Elkins, discusses the energy sector's M&A landscape. Despite oil price volatility, deal activity persists, with dealmakers adapting to the 'new normal.' A structurally higher oil price would be 'gangbusters' for energy M&A, and the current regulatory environment is seen as more favorable for large-scale projects and consolidation.