Oil and gas stocks were among the top performers on the S&P 500, with four industry players taking their place in the top 10. The reason for this was a higher price for oil coupled with enhanced volatility. But this is just one aspect of the story.
While higher oil prices were pushing up the stocks of energy companies, some were tapping equity and debt markets for fundraising and, unlike the past few years, were getting a positive response.
To make matters even clearer, investors appear to be hanging on to their oil and gas investments despite bankers’ warnings that the latest cycle in the industry may be drawing to a close, with returns likely to start falling. But bankers may be living in the past; oil and gas are hot again.
The Financial Times reported this month that fundraising activity among independent exploration and production companies in the United States has picked…
