Permania! Why M&A in the Permian Basin is at fever pitch

Is the Permian’s original value proposition coming true? Thousands of feet of productive strata and zone upon zone of development opportunity was the basin’s original selling point to investors. A pivot to deeper and secondary benches is well underway now. And some of the more radical Permian M&A moves in the past six months include exposure to deeper opportunities. This Insight presents our analysis of Wolfcamp D, Woodford and Barnett well performance. How do type curves for the growing population of secondary zone targets look compared to Wolfcamp A wells? Who’s been most active? What does our breakeven analysis reveal? What are the biggest risks to inventory growth? And what will unfold in deeper zone valuation over the coming years?

The US week in brief report highlights the need-to-know events from US upstream. It is a rolling document, continuously updated with our own analysis and opinion on events impacting the sector. Coverage includes US onshore and Gulf of Mexico. Sources for the news stories include company press releases, industry events, press coverage, and our own modelling changes. The facts are presented, but more importantly we discuss implications for our modelling.