With 2016 in the rearview mirror, M&A activity clearly showed confidence returned to deal makers as transaction value spiked by 111% compared to 2015, according to a Jan. 24 PwC US report.
Last year deal spending reached $21 billion in shale plays, a 166% increase from 2015.
But 2016 was clearly the year of the Permian, where A&D commanded 66% of last year’s deal value. “Deals done relied on the old real estate mantra: location, location, location,” the report said.
M&A could pick up further in 2017 and is off to a brisk pace. With a week remaining, January had generated at least $14.8 billion in announced E&P deals.