Lots of talk, little action sums up the first quarter of 2015.

While M&A chatter has spread through the markets the past few weeks, many companies have shored up their balance sheets with billions of dollars in equity raises and hunkered down.

E&P deal activity and value has plummeted. At mid-March 2015, deals in the United States and Canada have generated $2.1 billion, according to A-DCenter.com data. At the same point in 2014, deal activity was $17.9 billion.

Gabriele Sorbara, analyst, Topeka Capital Markets, gave his picks for top corporate takeout candidates among the companies he covers.

The companies include Cabot Oil & Gas Corp. (NYSE: COG), Energen Corp. (NYSE: EGN), Diamondback Energy Inc. (NASDAQ: FANG), Gulfport Energy Corp. (NASDAQ: GPOR), Laredo Petroleum Inc. (NYSE: LPI), Magnum Hunter Resources (NYSE: MHR) and Oasis Petroleum Inc. (NYSE: OAS).

“All would require significant premiums from current levels,” Sorbara said.

Additionally, FANG and EGN have the greatest upside to the transition to the Spraberry zones, he said.

M&A and joint venture (JV) chatter is spreading, but deals may be tough in this environment.

“While there has been much chatter regarding M&A in the sector, we do not believe the bid-ask spread has narrowed to a level to spark a wave of consolidation,” Sorbara said. “However, we would not be surprised to see some consolidation begin in the second half of 2015 timeframe as oil prices firm up, especially as managements’ expectations reset to a lower commodity price environment.”

However, everything is for sale at the right price. Higher quality asset companies will be the first to be acquired, Sorbara said.

“We continue to believe the lowest cost domestic plays, which are situated in the Permian Basin, Appalachia and in the Eagle Ford will continue to garner the M&A activity.”

Tudor, Pickering, Holt & Co. said service companies are also attracting attention. Forum Energy Technologies (NYSE: FET), for instance, is often thought of as a potential acquirer.

Tudor said March 16 that it expects slow and steady rather than eye-popping deals.

“Quite a bit of the interest we receive on FET has to do with M&A. What could they buy? Are there distressed opportunities to be taken advantage of?”

The firm said the recent $65 million acquisition of J-Mac Tool Inc., a frack equipment provider, is emblematic of what FET could do.

“This was a long-time target, family owned, and of the right size. In general, we see the bid/ask as still a headwind for the pace of deals right now. Sellers want to be paid on trailing results, which were great. Buyers want to pay on forward, which are going to be rough,” Tudor said. “But we believe FET has a target list it has been working for a while plus is likely on any logical list of manufacturer sellers so it will see the most opportunities in their targeted size range.”

Tudor said management should be a patient buyer and use its $180 million of 2015 free cash wisely.

The rout in commodity prices has prompted some cash-strapped companies to seek out financial partners to accelerate the value of their assets, such as Laredo and Magnum Hunter.

Others are pursuing divestitures to shore up balance sheets including GPOR, MHR, OAS, Gastar Exploration (NYSE MKT: GST), SM Energy Co. (NYSE: SM) and Pioneer Natural Resources (NYSE: PXD).

Companies unable to find a JV partner and/or sell non-core assets will likely need to tap the equity capital markets.

“With the amount of companies seeking JV partners and with valuations dropping, we believe it will be tougher to strike a deal in this environment, especially considering the increased competition for capital,” Sorbara said.

One example is MHR, which is pursuing a financial partner in the Ohio Utica Shale, with competition from others including Eclipse Resources Corp. (NYSE: ECR) and Rex Energy (NASDAQ: REXX). Both are also seeking potential JV partners in Appalachia and others that may be motivated to exit Appalachia given the lack of scale, including GST and Carrizo Oil & Gas (NASDAQ: CRZO).

“We believe MHR has a top-tier position in the Utica/Marcellus shale, an area which we believe will retain a premium valuation relative to other domestic resource plays. Thus, we are confident MHR can strike an accretive deal,” he said.