Royal Dutch Shell PLC (RDSA)’s $70 billion deal to acquire BG Group PLC (BG) could inspire a wave of M&A in the offshore drilling space, sources said. According to The Deal’s Senior Writer Claire Poole, three candidates to hit the auction block or divest assets are Energy XXI Ltd. (EXXI), W&T Offshore Inc. (WTI), and Stone Energy Corp. (SGY). Those companies have been hit hard in the stock market over the past year, and it might make sense for them to pursue M&A and divestitures, sources told Poole. Private equity firms may be looking for opportunistic deals, while big oil companies such as ExxonMobil Corp. (XOM), Chevron Corp. (CVX), and Shell may be hungry for more offshore assets.The Deal’s Senior Reporter Lisa Allen has the details from New York.
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