Permian consolidation defies headwinds
Surging profits and easy access to export markets are accelerating M&A activity, despite growing inflationary pressure
The Permian basin stands out as a bright spot for US shale consolidation, in contrast to the overall slowdown seen in M&A activity in the sector in the first half of the year. The basin continues to lead domestic crude production growth, and E&Ps backed by private equity (PE) have been eager to cash out. The Permian accounted for almost half of US upstream deal value in the second quarter, according to research firm Enverus. And the c.$4bn takeover of Midland-based independent Colgate Energy Partners III was the single-largest transaction and turned fellow indie Centennial Resource Development into the biggest pureplay firm in the Delaware basin. Appetite for Permian acreage also loo
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