Acquisition Premiums Return To The Oil Patch

The shale industry is showing signs of maturity. Some acquisition trends appear to be burgeoning, such as acquisition premiums, more debt, and looser hedging requirements. These portend higher values and perhaps more of an emphasis on longer-term drilling inventory as opposed to nearer-term production metrics. Let us take a quick look at them.Acquisition PremiumsFor many years in the oil and gas industry, there were numerous deals in public markets whereby the announced price of a company was at or near its ...