• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 38 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 36 mins Something wicked this way comes
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 1 hour Why NG falling n crude up?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 15 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!

Breaking News:

Norway’s Oil Fund Is Buying Bitcoin

The Secret To Survival For Canada’s Oil Sands

The Secret To Survival For Canada’s Oil Sands

Canada’s oil sands are often…

Can Biden Decarbonize The U.S. Power Sector In 15 Years?

Can Biden Decarbonize The U.S. Power Sector In 15 Years?

Joe Biden’s plan to decarbonize…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

It’s Time For A Fire Sale In U.S. Shale

An all-stock acquisition in the Permian basin this week has made headlines for the two companies involved—Callon Petroleum and Carrizo Oil & Gas—but the implied value of the deal is multiple times lower than it would have been five years ago during the first wave of the U.S. shale boom.  

Pressured by meager returns, if at all, and lower—if any—returns to shareholders, smaller U.S. shale players are looking for economies of scale and acreage positions close to their current ‘sweet-spot’ operations.

Yet, the mergers and acquisitions (M&A) scene across the U.S. shale patch hasn’t been thriving this year, except for a one-time huge deal between large-cap companies, the Occidental/Anadarko tie-up, the likes of which occur once in half a decade.

Even with the current low deal multiples and low valuations, smaller companies aren’t rushing to close deals.

Those on the hunt for deals are carefully looking for quality over quantity and are not buying acreage that doesn’t materially improve the quality of their shale assets portfolio, Ryan Luther, a senior analyst with RS Energy, told Forbes contributor Christopher Helman. The analyst was commenting on the M&As in the U.S. shale patch and on this week’s announcement that Callon Petroleum and Carrizo Oil & Gas approved a definitive agreement under which Callon would buy Carrizo in an all-stock transaction valued at US$3.2…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News