The Permian Basin is the No. 1 drilling hot spot in North America.
More than $90 billion in deals have been made in the Permian Basin in West Texas and southeast New Mexico from January 2013 through July 2018, according to a new report.
The report was prepared by staffers of Ralph E. Davis Associates, an affiliate of Houston energy consulting firm Opportune LLP, Kallanish Energy reports.
The report focuses on deals valued at $100 million or more, the Houston Chronicle newspaper reported.
The Permian Basin is the most active basin in terms of acquisitions and divestitures. That total only counts land deals, not well drilling or needed infrastructure.
Crude oil prices for West Texas Intermediate varied widely during the study’s time period, rising as high as $103 a barrel in August 2014, to $30/Bbl in January 2016, according to the report.
The report said some of the most active dealmakers in the Permian Basin included Parsley Energy with 12 transactions, Diamondback Energy with eight, and Callon and Concho Resources, each with five deals.
Some of the region’s most active sellers were Chesapeake Energy, BHP Billiton, which just sold its acreage to BP, Anadarko Petroleum and Apache Corp.
The study’s authors said these companies were active in selling in order to “rationalize their portfolio of assets,” the Houston newspaper reported.
