Deals still to be done in US shale patch
Operators including majors have snapped up nearby acreage to leverage synergies at lower cost. But with oil prices higher and discounts potentially fading, will prolific spending slacken?
M&A opportunities in the US shale patch caught the attention of some of the largest players last year as consolidation boomed and large-scale takeovers gained traction. This year, boosted by low acreage prices, recovering WTI and a still financially strained sector, those with the most robust balance sheets may again be tempted to snap up complementary assets. Onshore acreage pricing took a beating in 2020 as WTI went into freefall. Consultancy Rystad Energy estimates that average prices declined by 70pc, dropping from $17,000/acre in 2018 to just $5,000/acre. Less financially strained operators were gifted with ample opportunities to purchase at a discount—as highlighted by acquisitions
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