In a significant development in the energy deals market, Gibson Dunn & Crutcher has outpaced its competitors by working on over $90 billion worth of energy deals this year, securing its position as the leading law firm in this sector. The Los Angeles-founded firm, renowned for its litigation prowess, has notably climbed the energy deals leaderboard since establishing a Houston office over six years ago.
Strategic Moves and Strong Foundations
Gibson Dunn’s ascendancy in energy deals is attributed to its strategic move in 2017 to expand its oil and gas practice through significant investments in Houston. According to Michael Darden, co-chair of Gibson Dunn’s oil and gas practice, the firm’s success is grounded in recruiting high-caliber attorneys with established business networks, reputations, and relationships. This patient and strategic approach set Gibson Dunn apart from other firms attempting to penetrate Texas’s lucrative energy M&A market.
Building a Formidable Team
Gibson Dunn bolstered its Houston team by recruiting key professionals, including Justin Stolte from Apache Corporation and founding partners from Baker Botts. The firm’s commitment to growth was further evident with the addition of James Hays from Simpson Thacher & Bartlett and Rahul Vashi from Kirkland, strengthening its position in the energy sector.
Notable Deals and Global Reach
Gibson Dunn’s influence extends beyond domestic deals, with the firm making a mark in the overseas energy market. In March, the firm’s Dubai partners played a crucial role in advising Abu Dhabi National Oil Company and ADNOC Gas on the historic IPO of ADNOC Gas, the largest-ever listing on the Abu Dhabi Securities Exchange.
Some of Gibson Dunn’s major deals include advising Pioneer Natural Resources in its $59.5 billion sale to ExxonMobil, Patterson-UTI Energy, Inc. on its $5.4 billion merger with NexTier Oilfield Solutions Inc., and representing Berkshire Hathaway Energy in its $3.3 billion stake purchase in Cove Point LNG.
Industry Trends and Market Dynamics
Gibson Dunn’s success in a down year for M&A is noteworthy, as energy deals have proven to be a bright spot in the legal landscape. Blockbuster energy deals in October, including the ExxonMobil-Pioneer acquisition and Chevron’s $53 million purchase of Hess Corporation, contributed to a surge in energy transaction volume, reaching over $158 billion in the fourth quarter, the highest in more than two years.
Competition and Future Outlook
While Gibson Dunn leads the pack, competition in Texas remains fierce. Vinson & Elkins, Baker Botts, and Norton Rose Fulbright dominate the local energy market. Notable entrants like Latham & Watkins and Kirkland & Ellis have made significant strides, with Davis Polk securing the second spot on the energy league tables.
While celebrating its success, Gibson Dunn remains focused on expanding its energy practice. With a presence in London and Singapore and recent expansion into the UAE, the firm anticipates new competition, including the recent entry of Clifford Chance into Houston. As the energy deals market evolves, Gibson Dunn is poised to navigate the competitive landscape and maintain its stronghold.
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