Booming production and proximity to Gulf Coast export terminals weigh in the play’s favor.
Permian Basin well productivity has trended down. Top-tier drilling locations are scarce. Capital is at a premium. E&Ps need low-cost inventory and scale, and they’re willing to pay big bucks to get them.
Shareholder demands for capital discipline and market resistance to its allure are forcing U.S. oil and gas companies to find an alternative growth strategy: consolidation.
Kodiak Gas Services and CSI Compressco said they will have the largest contract compression fleet in the industry, with more than half of its horsepower serving the Permian Basin.
Industry experts expect E&Ps to stick with tried and true capital discipline with lighter hedging and more credit financing.
Megadeals between Chevron and Hess and Exxon and Pioneer Natural Resources are under intensified scrutiny but the oil and gas firms say they will cooperate in the U.S. Federal Trade Commission’s “second request” for information.
If Australian energy companies Woodside and Santos merge, they would have a 26% share of Australia's east coast gas market.
Small and mid-caps’ strong balance sheets look attractive to credit investors and can provide equity that sweetens M&A.
East Daley Analytics will look at factors driving market volatility in its annual “Dirty Little Secrets” webinar.
Exxon reported more scrutiny from the FTC on Dec. 6, while Pioneer Natural Resources’ incoming CEO Rich Dealy told Hart Energy both firms will be transparent with the inquiry.