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

On 31 October 2016, Occidental Petroleum Corporation (Oxy) announced it had acquired producing and non-producing leasehold acreage in the Permian Basin from private sellers. Separately, the company acquired interests in several Permian Basin enhanced oil recovery (EOR) and CO2 properties, and related infrastructure. The total purchase price for these transactions is approximately US$2 billion.

Gulfport Energy continues to high-grade its acreage and grow its position in the Lean Gas Core. Meanwhile, Chevron shifts its capital focus from mega projects towards the Permian, while University Lands bets on the price recovery with plans to unlock additional Permian leases in 2017. On OFS side, Patterson-UTI acquires Seventy Seven Energy to position itself for margin recapture. Stories this week include: Bulking up on lean gas: Gulfport extends its lead in the best part of the Utica. Chevron's Permian story continues, despite global 2017 capex cut by 15% Patterson-UTI positions itself for margin recapture with Seventy Seven Energy acquisition School is back in session for University Lands and Permian acreage leasing

This week, we analyse a new trend in US L48 rig count prior to the upcoming OPEC meeting and discuss our updated view on US Lower 48 supply. What is driving the surge in US L48 horizontal rig count? What is the role of US L48 production in the global supply outlook? We also cover Shell's updated production guidance for its shale assets and look at how Gulfport's new wells are defying the traditional learning curve in the SCOOP.