Focused shale deals buck M&A slowdown

Fewer North American corporate transactions may be done this year. But rationalisation of shale portfolios on an asset-specific basis should continue

The M&A wave that has been playing out across the North American shale industry since the second half of 2020 could run out of steam this year. However, there still appears to be plenty of scope for parcels of shale acreage to change hands as producers continue to refine their portfolios and build scale. Since the start of the year, a major shale asset sale has been announced in Wyoming’s Powder River Basin, while elsewhere across North America, other acreage is on the block. In late January, US independent Chesapeake Energy announced it had struck a deal to sell its Powder River Basin assets to peer Continental Resources for $450mn. The sale is expected to help fund Chesapeake’s $2.6bn