Following last week’s $7.53 billion Mitsubishi Corp’s acquisition of Aethon Energy’s Haynesville gas assets, more mergers of equals are rumored to be in the works and predicted to accelerate this year. One of those in discussion is Okla. City-based Devon Energy and Houston-based Coterra Energy, which if combined, would create one of the nation’s largest independent shale producers with a total 800,000 acres and 863.3 MBOED in the Permian Delaware.

Reese Energy Consulting today is following the new wave of consolidation and a shift in strategy among small-and-medium-sized producers to stay in the game by increasing assets in core operating areas, offload non-core assets, expand drilling inventory, or explore new opportunities here or outside the U.S.

Inside the U.S., the number of E&Ps as potential merger buddies are dwindling. Don’t blame us. Exxon and Pioneer Resources started this mega-merger business.

According to an article in Hart Energy, Jon Hughes, co-founder, chairman and CEO of investment bank Petrie Partners said, “There simply aren’t as many companies as there used to be, so there aren’t as many combinations.”

Well, maybe not. But you never know if an Occidental and Diamondback duo could be just around the corner. By the way, Exxon isn’t looking to merge but it does have a large Eagle Ford position for sale. Color it an opportunity.

What do you think? Learn more about REC and our natural gas, NGL, LNG, and international energy services at www.ReeseEnergyConsulting.com.