Deals & Trends

The company plans to keep its U.S. shale position at less than 20% of total production to weather downturns with low decline rates, but seems committed to paying dividends.

Analysts see WPX’s ability to deal its gas assets as a positive for other E&Ps looking to divest noncore producing assets amid low commodity prices.

A news report that said the company had hired a restructuring attorney sent the price of the stock tumbling, but Chesapeake countered it had no intention of filing for bankruptcy.

Although M&A and A&D activity has been down lately, some believe change is coming.

President Barack Obama is proposing to pay for clean energy investments by placing a $10 per barrel oil fee as the industry grapples with low prices. Congressional leaders said the plan is dead on arrival.

Craig Lande, managing director at RBC Richardson Barr, says A&D will be different in 2016: capital markets are tightening, 20% of production is hedged and demand is hopelessly outmatched by supply.