Distressed sales aren’t here yet, but there is clearly blood in the water for E&Ps and oilfield services (OFS) companies.

Mom and pop OFS companies have already put up auction notices, while E&Ps are seeing signs that the sales may begin by summer.

Companies such as Synergy Resources Corp. (NYSE MKT: SYRG) say the flow of potential Wattenberg M&A deals is picking up and could get more attractive by summer, said Mike Kelly, senior analyst, Global Hunter Securities.

Synergy continues to truck along with growth and return as the lowest-cost Niobrara producer, making it a Buy in the small-cap E&P space, Kelly said.

The company has also been looking ahead to what it can pick off from faltering companies.

Synergy raised about $190.7 million in January, driven by management's desire to amass ample dry powder that could be used for opportunistic acquisitions or leases surrounding its 36,000 net acres in the Wattenberg core.

“While nothing has been inked yet, management states the flow of potential deals has picked up,” Kelly said. “Even the body language of some of the larger players in the field is starting to indicate that there may be a deal to be had on acreage.”

True distressed opportunities haven't emerged so far, but Synergy management told Kelly that could soon change. Borrowing base redeterminations and the possibility that oil has failed to rebound to the $60 range could result in a summer shopping spree.

Synergy is seen as the logical consolidator in the basin, Kelly said. In part that’s because the company is keeping its drilling and completion costs to less than $3 million per well, about $1 million cheaper than other companies in the basin.

The pressure from less drilling activity, or to drive drilling costs down, is hitting service companies.

Forbes Energy Services Ltd. (NASDAQ: FES) has already cut 10% of its labor costs and is intent on surviving another down cycle by focusing on what oil company must-haves.

As with E&Ps, it’s too early for distressed asset sales, said Mark Brown, senior analyst, Global Hunter Securities.

Forbes is already starting to see some auction notices–mostly small shops–but with bid-ask spreads too wide.

“The company expects some eventual asset consolidation and potentially the emergence of a new competitor,” Kelly said.

Basic Energy Services (NASDAQ: BAS) could act as a consolidator, Brown said. Key Energy Services Inc. (NYSE: KEG) does not appear to have the money it needs to acquire assets. Pioneer Energy Services Corp. (NYSE: PES), with a presence in the Bakken, Permian and Eagle Ford, could also become a consolidator.

Distress may come from obscure corners. Prior to the downturn, fluid logistics struggled due to the oversupply of infrastructure from private equity investments.

But the power dynamic has changes from disposal sites to who controls the water. A significant amount of FES’s work involves hauling produced water, which is not directly driven by the rig count.

“The industry may face a shake-out period as private equity players either attempt to exit the business or consolidate operations,” Brown said. “Forbes has a strong foothold in the Eagle Ford, although it has been facing competition in the Permian to BAS and others.”

Well servicing should hold up better in this downturn compared with 2008-09 because a larger number of wells require well servicing. Forbes also expects ongoing demand for well maintenance, workovers, re-completions and re-entries.

Pricing is down about 15% for the industry with not much margin to give back, Brown said.