Permian to retain US deal-making lead

A Q4 M&A upswing proved there are still consolidation opportunities and the Texas/New Mexico basin will remain the hotspot

Most US oil and gas corporate transactions focused on the Permian basin over the past year, and this trajectory looks unlikely to change in 2021. In a still relatively subdued oil price environment, companies will likely continue targeting cost synergies and high-quality inventory when considering possible takeovers or mergers. Volatile market conditions triggered by the Covid-19 pandemic had a dramatic impact on E&P consolidation across the US shale patch. Last year, corporate deals fell to their lowest aggregate since at least 2006 and slumped to their worst combined valuation in five years, at just $52bn. But across improving economic conditions in the final two quarters, transactions