A merger wave washed over the oil patch last year. Oil giant Chevron (NYSE: CVX) kicked things off in July by agreeing to acquire Noble Energy for $13 billion. That spurred a flurry of similar deals as oil producers paired up to drive down costs.
The oil industry 's current M&A wave has now splashed into the midstream sector . Chevron again opened the floodgates by offering to acquire Noble's former MLP Noble Midstream Partners (NYSE: NBLX) for an additional $1.13 billion earlier this month. Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) then followed with an offer to acquire Inter Pipeline (TSX: IPL) , while Energy Transfer (NYSE: ET) sealed a deal to merge with Enable Midstream (NYSE: ENBL) . More activity seems likely as the pipeline industry seeks to reduce costs as the global economy shifts to cleaner fuel sources.
Image source: Getty Images.
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The Merger Wave in the Oil Patch Starts Heading Midstream