According to PricewaterhouseCoopers, Total M&A Activity May be Down, But Energy and Oil Companies Still Seeking Opportunities to Put Excess Cash to Work.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 26, 2001

(...how much is too much in a cyclical sector?)

While overall M&A activity has slowed significantly, the ongoing consolidation of the energy industry in North America will accelerate in the second half of 2001, particularly among independents, according to the energy M&A team at PricewaterhouseCoopers. But acquirers run the risk of overpaying at what may be the high end of the pricing cycle.

Rick Roberge, a partner in the Transaction Services group at PricewaterhouseCoopers, can discuss:

-- How large independent producers are driving the consolidation process, both
in the US and Canada - and why the major producers are divesting assets.

-- Why energy M&A will continue - as capital markets demand growth and returns
in excess of the cost of capital.

-- Why aggressive acquirers need to realistically evaluate the potential return
from deals - and why some companies may be better off strengthening their
balance sheets through debt repayments or stock buy-backs.

The Transaction Services group of PricewaterhouseCoopers (www.pwcglobal.com/ustransactionservices) offers a deal process that helps clients bid smarter, close faster, and realize profits sooner on mergers, acquisitions, sales and financing transactions. Dedicated deal teams operate from 13 U.S. cities and some 90 locations in North America, Latin America, Europe and Asia.

PricewaterhouseCoopers is the world's largest professional services organization. Drawing on the knowledge and skills of more than 150,000 people in 150 countries, the organization helps clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance in an Internet-enabled world. PricewaterhouseCoopers refers to the member firms of the worldwide PricewaterhouseCoopers organization.