Alternatives
shutterstock_2364977019.jpg

April 1, 2020

E&P Second Quarter 2020

Permian Basin

Executive Summary

WTI front-month futures prices increased over 90% during the second quarter of 2020, though it was a bumpy road getting there.  Prices at the beginning of the quarter were ~$20/bbl, still depressed in the wake of the Saudi/Russian price war and demand destruction caused by COVID-19.  In early April, prices generally increased, approaching nearly $30/bbl by the middle of the month.  However, on April 20, WTI futures prices collapsed, falling below $0 to settle at negative $37/bbl.  While there are numerous technical reasons for the collapse, there was significant concern regarding crude storage capacity as production had not declined in tandem with demand.  However, crude futures prices generally increased thereafter, driven by supply cuts from OPEC+, curtailments by U.S. producers, and a recovery in demand.  WTI front-month futures prices ended the quarter at $39.34/bbl.

Download the full newsletter

Download
Download the newsletter

Continue Reading

Permian Basin M&A Update: 12 Months Ended July 30, 2026
Permian Basin M&A Update: 12 Months Ended July 30, 2026
The Permian Basin M&A market has entered a new phase characterized by targeted, strategic acquisitions rather than broad industry consolidation. Buyers remain focused on high-quality assets that enhance operational efficiency, extend drilling inventory, and generate durable long-term value.
Federal Lease Sales and the Continuing Premium for Core Acreage
Federal Lease Sales and the Continuing Premium for Core Acreage
Record-setting federal oil and gas lease sales in 2026 underscore the premium investors place on scarce, high-quality core acreage with strategic development potential. The results illustrate why lease sale pricing must be evaluated alongside broader valuation metrics when assessing upstream assets.
The Pendulum Is Swinging: Reserve Life Matters Again
The Pendulum Is Swinging: Reserve Life Matters Again
Reserve life and inventory quality are becoming increasingly important valuation drivers as the shale industry matures and premium drilling locations become scarcer. Investors are placing greater emphasis on the sustainability and duration of future cash flows, rewarding companies with long-term, high-quality development opportunities.

Cart

Your cart is empty