M&A activity surges for well-hedged shale operators

Deal volumes in US shale sector soar as operators slash costs and hedge against falling oil prices

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Despite the prospect of a sharp drop in oil prices if the Organisation of the Petroleum Exporting Countries (Opec) does not extend its current production-cutting deal past June, key shale plays will remain attractive targets for merger and acquisition (M&A) activity, which has soared over the past few months.

“Many of these shale plays, especially in the Permian Basin, won’t be deterred by a $10 swing south of a $50 per barrel mid-point as they are still profitable at $35, $36 per barrel even,

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