When the oil price was above $100 per barrel, many oil and gas companies practiced hedging to secure their revenue. However, when the oil price failed to recover gracefully and started oscillating around $40 per barrel pivot, the artificial strategy started to bite the dust. Oil and gas companies from large to small started to let their assets loose to survive one of the biggest price drop in the oil and gas history. Not to mention of bankruptcies (to name a few like Hercules Offshore, Sabine Oil and Gas Corp, etc.) and dramatic spending cuts with no ending date. With all these being said, this means one of the biggest sales will about to happen in the wake of the chaos in the oil and gas industry. Companies in distress will start looking ways to divest their assets to solve the debt crises and start to deploy their refocusing strategy.
With desperation as a motive to sell the assets, time has become an essence to the potential buyer to make an informed decision. In addition, this also means the buyer will have more upper hand as the price will go below what the asset is worth.