Apart from today’s news that Chesapeake Energy and Southwestern Energy (two huge gas drillers) are close to announcing a merger (see today’s lead story), it is oil companies in U.S. shale that seem to be at the epicenter of a hot M&A market. According to an analyst writing for Argus Media, “meaningful consolidation among US natural gas producers looks unlikely to take place soon owing to historically low, volatile commodity prices and a dearth of large privately-held operators.” The best opportunities lie with companies that have assets in the Haynesville, says the analyst. Perhaps uncoincidentally, both Chesapeake and Southwestern have major assets in the Haynesville (and the Marcellus/Utica).
Apart from today’s news that Chesapeake Energy and Southwestern Energy (two huge gas drillers) are close to announcing a merger (see today’s lead story), it is oil companies in U.S. shale that seem to be at the epicenter of a hot M&A market. According to an analyst writing for Argus Media, “meaningful consolidation among US natural gas producers looks unlikely to take place soon owing to historically low, volatile commodity prices and a dearth of large privately-held operators.” The best opportunities lie with companies that have assets in the Haynesville, says the analyst. Perhaps uncoincidentally, both Chesapeake and Southwestern have major assets in the Haynesville (and the Marcellus/Utica).