There has been a flurry of mega deals in the US shale patch aimed at delivering significant productivity gains and offsetting impacts of any potential drilling slowdown. The Permian Basin in particular has been at the epicenter of M&A frenzy in recent years, and this trend shows no signs of abating. Both upstream and midstream companies operating within the basin are actively pursuing strategic consolidations to bolster their financial positions, achieve operational scale, and expand their strategic footprint. There are several trends and factors that suggest that we have not seen the end of mega consolidation in upstream and midstream sectors.

Producers Lead the Charge The initial wave of M&A was spearheaded by producers seeking to consolidate their operations and enhance drilling efficiency. Notable transactions include Pioneer’s acquisitions of Parsley Energy and DoublePoint Energy, ConocoPhillips’ acquisition of Concho Resources, Chevron’s purchase of Noble Energy, Apache’s acquisition of Callon Petroleum, Exxon/Mobil’s purchase of Pioneer and the recent