The shale plays’ E&P segment finds itself in an ongoing game of musical chairs. There are more players than profitable prospects or investor money nowadays, so when the music stops—which has happened a lot in recent years when commodity prices tanked—someone gets caught without a seat.

“It’s a slow transition” that will continue, Andrew McConn, principal analyst, operator intelligence, for Enverus, formerly Drillinginfo, told attendees Oct. 23 at Hart Energy’s 18th annual A&D Strategies and Opportunities conference here. He called M&A deal flow “the lifeblood” of the sector over time.

“I think there is broad consensus that we’re well into this stage of the life cycle,” of shale players. “There is a notion of inevitability to it.” Opinions vary of when and how it will happen, he noted.

Already have an account? Log In

Thanks for reading Hart Energy.

Subscribe now to get unmatched coverage of the oil and gas industry’s entire landscape.

Get Access