Following a cataclysmic 2020, the A&D market appears to be back in full swing with the focus so far this year on public E&Ps rolling up private operators.

“The upstream A&D market is improving on every front,” said Jake Stroud, who serves as senior vice president of business development at Crescent Pass Energy, a privately held E&P company based in Houston.

In the latest installment of the Path Forward series, Stroud sat down with Hart Energy’s Emily Patsy for an exclusive look at A&D activity from the point of view of a private operator.

“Realistic seller motivation has certainly turned a corner since last year,” he continued. “Deal quantity is significantly higher. Deal quality is significantly higher. You’re seeing a spectrum from a $6 billion deal all the way down to dozens, if not, hundreds of small operators transitioning either out of the space or into a more passive stance.”

Stroud described current A&D activity as a seller’s market and highly competitive, which he sees remaining vibrant for the next several years depending on the stability of commodity prices.

During the discussion, Stroud also provided insight behind Crescent Pass Energy’s strategy and the company’s plans for the year ahead.

“I spend most of my day scouring the Patch for opportunities both on and off the market,” he said. “I’m excited to see the A&D ecosystem is so much more vibrant in May of 2021 than it was in May of last year. Frankly, it’s all we can do to keep up with what the A&D community is bringing to market.”

Jump to a topic:

  • Current state of A&D (1:00)
  • Crescent Pass Energy (3:10)
  • Different approach to A&D (6:25)
  • Plans for the year ahead (8:30)
  • Fallout of consolidation (10:35)
  • Industry’s path forward (15:05)
  • A&D’s role in driving innovation (22:00)
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