Acquisitions & Divestitures

Following a virtually dormant eight-month period beginning in November 2008, A&D activity is beginning to revive. But despite some capital-market recovery and relatively strong oil pricing, most experts do not expect activity to improve dramatically until natural gas prices are again aligned with oil at historical levels. In other words, the single biggest driver in A&D activity is commodity price, followed closely by capital availability.

Pricing contango. Oil prices have stabilized at around $65 to $75 per barrel since June, which is a solid price environment in which to sell ...