Foreign asset buyers are considering U.S. upstream M&A to lower their LNG supply costs and avoid windfall taxes on European operations, Jefferies Managing Director Bill Marko says.
A shrinking pool of opportunities is leading to scarcity and driving the rising valuations for crude E&Ps in the current A&D market, said TD Cowen analyst David Deckelbaum at Hart Energy’s A&D Strategies and Opportunities Conference.
Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.
Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Foreign asset buyers are considering U.S. upstream M&A to lower their LNG supply costs and avoid windfall taxes on European operations, Jefferies Managing Director Bill Marko says.
A shrinking pool of opportunities is leading to scarcity and driving the rising valuations for crude E&Ps in the current A&D market, said TD Cowen analyst David Deckelbaum at Hart Energy’s A&D Strategies and Opportunities Conference.
Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.
Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
At least $1.8 billion in A&D transactions have taken place already in 2024.
Eric Mullins said that as large-scale M&A players begin to rationalize their purchases, as much as $18 billion in non-core divestments could find homes to asset-hungry acquirers.
Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
Infrastructure service company Flowserve Corp. has completed its acquisition of MOGAS Industries for $305 million.
Private equity titan Wil VanLoh, founder of Quantum Capital Group, shares his perspective on the dearth of oil and gas exploration, family office and private equity funding limitations and where M&A is headed next.
After a whirlwind run of upstream consolidation, experts anticipated a wave of portfolio rationalization and divestitures. But with high-quality drilling locations already scarce, E&Ps may cling to operated inventory.