GlobalData’s latest report, Quarterly Midstream Capital Raising Review – Q2 2018, shows that global raising activity in the midstream sector totalled $40.7bn in Q2 2018. This was a decrease of 30% from the $58.1bn in capital raising deals announced in Q1 2018. On the volume front, the number of capital deals decreased by 24% from 93 in Q1 2018 to 71 in Q2 2018.

A year-on-year comparison shows a decrease of 6% in capital raising value in Q2 2018, when compared to Q2 2017’s value of $43.1bn. The quarter recorded 27 capital raising deals with values greater than $500m, together accounting for $30.7bn.

Capital raising, through debt offerings, witnessed a decrease of 18% in deal value, recording $32.1bn in Q2 2018, compared to $39.3bn in Q1 2018. Capital raising, through equity offerings, registered a significant decrease of 69% in deal value, with $3.6bn in Q2 2018, compared with $11.7bn in Q1 2018. Further, five private equity/venture capital deals, with a combined value of $5bn, were recorded in Q2 2018, compared to seven deals of a combined value of $7.1bn in Q1 2018.

One of the top deals of Q2 2018 was Dominion Energy’s agreement to issue floating rate notes for gross proceeds of up to $3bn, in a private placement. Pursuant to the offering, the company will issue variable denomination floating rate demand notes, marketed and sold as Dominion Energy Reliability Investment. The company will pay a floating rate of interest competitive with other short-term cash investments. These rates will be determined on a weekly basis. Georgeson Securities Corporation is acting as broker to the company for the offering. The company intends to use the proceeds to finance capital expenditures and future acquisitions and to retire or redeem debt securities, and for other general corporate purposes, which may include the repayment of short-term debt.

Midstream capital raising deal value and count, Q2 2018

Source: Deals Analytics, GlobalData Oil and Gas                           © GlobalData

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Regionally, the Americas led the global capital raising market in terms of volume and deal value, with 45 deals worth a combined value of $31.3bn, in Q2 2018. Europe, the Middle East and Africa accounted for 24% of the global capital raising deals in Q2 2018, with 17 deals of a combined value of $6.5bn. While Asia-Pacific accounted for 13% of global deals, with nine deals worth a combined value of $3bn.