Permian basin drives US M&A revival

摘要

The Permian basin in Texas is driving a revival in US oil and gas mergers and acquisitions (M&A), which have picked up since June after crude prices returned to above $40/bl. Activity is expected to increase further as easing price volatility narrows the range of asset valuations between buyers and sellers. Upstream independent Concho Resources and mid-sized producer Parsley Energy are the latest firms to buy assets in the Midland region of the Permian basin, following a $1bn acquisition by independent SM Energy. Concho paid $1.63bn for about 40,000 net acres (162km2), expanding its core Midland basin position to 150,000 net acres with a total output of 30,000 b/d of oil equivalent (boe/d). Of that, 10,000 boe/d comes from the new deal. It gives the company a drilling inventory of more than 530 long-lateral locations. “These assets not only build scale, but more importantly high-grade our inventory with additional long-lateral locations that compete with the best projects in the Permian basin,” chief executive Tim Leach says.