In the US domestic upstream oil and gas market, 2021 has been all about consolidation and exploration and production (E&P) companies focusing on disciplined growth and asset optimization. In an effort to win back the confidence of public and capital markets, many E&P companies have recalibrated their strategies and focus toward maximizing the value of existing assets by deploying maintenance capital to drill wells on existing leases and relying less on acquiring new prospects and chasing growth just for growth’s sake. All of this is aimed at establishing a consistent, stable-free cash flow that can be returned to investors and recouping some of the financial losses borne by those investors over the tumultuous past decade.
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