Is South Texas the next hotspot for billion dollar energy deals?

Several public companies have reported A&D activity alongside first-quarter earnings. Callon Petroleum unveiled plans to exit the Eagle Ford Shale and expand in the Permian Basin. Callon says the two deals will streamline its portfolio and allow it to start a shareholder return program later this year. 

Crescent Energy is bolting on assets in the Eagle Ford in a $600 million cash deal. Crescent expects to nearly double its operated Eagle Ford inventory through the acquisition of Mesquite Energy. Eagle Ford transaction value topped $5 billion in the first quarter, the highest level in almost a decade. Will more E&Ps look at South Texas for producing assets? 

Diamondback Energy has completed divestitures of upstream and midstream assets. The company closed three deals to sell acreage and royalty interests in the Permian Basin during Q1. Diamondback also sold equity interest in a pipeline project to Enbridge. The company said that there's "a pretty high probability" it sells more midstream interests this year. 

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