Four of the Sweet 16 are "Takeover Targets"

[dan_s]

With the price of oil seemingly range-bound since rallying from the lows, and acreage prices in prime territories like the Permian Basin and the Bakken Shale looking incredibly reasonable, some on Wall Street are beginning to think some mergers and acquisition activity could be coming this spring.

In a new research report, Neal Dingmann and his outstanding E&P team at SunTrust Robinson Humphrey feel that the Permian, Bakken and the Eagle Ford are ripe for consolidation given the steep acreage discounts within the top regions.

Read: https://247wallst.com/energy-business/2 ... rgets/amp/


My valuation method is basically what my team at Hess did to screen small-caps for takeover targets. All of the large-caps have teams that are constantly looking for acquisition and/or merger targets. They are now armed with fresh year-end reserve reports. - Dan

[mkarpoff]

You make this sound like a good thing. Those of us who bought before the Trump-induced crash would be upside down were any of our companies bought out even at a 30-50%j premium.

[dan_s]

Increased M&A draws a lot of attention to the sector because it highlights how under-valued these companies are.

As the shale plays move into "manufacturing mode", it is a classic case for consolidation.