Offloading assets drives US deal-making
An accelerating vaccine rollout and robust oil prices encourage consolidation across marginal plays
Deal-making in the US shale patch recorded a sluggish Q1 for the third year in a row but appears to be picking up pace, as highlighted by the recent $6.2bn takeover of West Texas producer DoublePoint Energy. Big-name shale producers were snapped up in the latter half of last year as consolidation took hold. By contrast, transfers of asset ownership, rather than corporate M&A, have been the preferred choice of operators so far in 2021, potentially due to oil prices rising above $60/bl and a strengthening US economy buoying the price expectations of would-be prey. “Management teams know they need a stellar case to justify deals to investors” Meats, Morningstar “Asset-focused deals
Also in this section
23 October 2024
Majors in the region are pushing boundaries and could see significant upside, but longer-term risks remain
22 October 2024
Angola is unlikely to meet the official timeline for an IPO of state-owned oil giant Sonangol in 2026
21 October 2024
Companies operating offshore assets in the region are unlikely to halt development plans for now, even as hostilities intensify
21 October 2024
For the tanker market, recent escalation in the Mideast conflict has largely been offset by soft fundamentals