Upstream mergers and acquisitions accelerated in second quarter, according to Enverus Intelligence Research, after a relatively quiet 1Q. Enverus said second quarter activity expanded with 20 transactions valued at $24 billion. That included six deals of more than $1 billion each, including five with assets in Permian Basin. “The need for public buyers to secure quality drilling inventory has been brewing,” Andrew Dittmar of Enverus said, “and the pressure to make a deal has been mounting as the remaining opportunities are narrowed with each successive transaction. That, in turn, is driving higher valuations on the remaining assets.”
Enverus said only about 15-to-20 private companies remain in Permian Basin with more than 100 net locations (“and many of those unlikely to sell”). Those include Endeavor Energy Resources, Mewbourne Oil and BTA Oil Producers. New groups increasingly are looking outside the Permian (to Eagle Ford and Williston) because of competition for Permian deals.