Permian to retain US deal-making lead
A Q4 M&A upswing proved there are still consolidation opportunities and the Texas/New Mexico basin will remain the hotspot
Most US oil and gas corporate transactions focused on the Permian basin over the past year, and this trajectory looks unlikely to change in 2021. In a still relatively subdued oil price environment, companies will likely continue targeting cost synergies and high-quality inventory when considering possible takeovers or mergers. Volatile market conditions triggered by the Covid-19 pandemic had a dramatic impact on E&P consolidation across the US shale patch. Last year, corporate deals fell to their lowest aggregate since at least 2006 and slumped to their worst combined valuation in five years, at just $52bn. But across improving economic conditions in the final two quarters, transactions
Also in this section
28 March 2024
The country’s largest gas field is a bright spot for the North Sea, boasting cleaner operations amid a changing mood in Europe over hydrocarbons
28 March 2024
Whether OPEC+ starts to unwind its oil production cuts from June will depend on heavily debated unfolding supply-demand balances
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources