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AMERICAS OIL: Fewer, Smaller Shale Deals for 2025: Enverus

AMERICAS OIL
USEnergy BulletsNorth AmericaBulletCommodities

US shale deals are set to fall in 2025 as breakeven prices for acquired inventory will likely rise, consultancy Enverus said, cited by Argus.

  • This follows the $300b of consolidation in the industry over the past two years
  • The rapid pace of mergers and acquisitions targeting shale-based assets has led to many of the best targets being snapped up.
  • The quality of newly acquired inventory is declining, averaging a $50/bl breakeven price in 2024, up from $45/bl in 2022-23.
  • The pool of available remaining private equity assets is largely smaller, higher on the cost curve, or both.
  • A pressing need for scale and future location inventory will encourage smaller producers to embark upon more deals.
  • Improved efficiencies, such as drilling longer lateral wells, will be key in boosting economics on more marginal acreage.
  • Mergers involving public companies will ease up in 2025 from a recent average of five per year, Enverus said.
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US shale deals are set to fall in 2025 as breakeven prices for acquired inventory will likely rise, consultancy Enverus said, cited by Argus.

  • This follows the $300b of consolidation in the industry over the past two years
  • The rapid pace of mergers and acquisitions targeting shale-based assets has led to many of the best targets being snapped up.
  • The quality of newly acquired inventory is declining, averaging a $50/bl breakeven price in 2024, up from $45/bl in 2022-23.
  • The pool of available remaining private equity assets is largely smaller, higher on the cost curve, or both.
  • A pressing need for scale and future location inventory will encourage smaller producers to embark upon more deals.
  • Improved efficiencies, such as drilling longer lateral wells, will be key in boosting economics on more marginal acreage.
  • Mergers involving public companies will ease up in 2025 from a recent average of five per year, Enverus said.