There are a lot of big deals out there on the A&D Market as the price of oil remains on the uptick, but buyers are choosing to practice capital discipline, said RBC Richardson Barr managing director Craig Lande.
Lande, of course, wants the public E&Ps to return to the buyside, where they usually dominate. But that isn’t what the market is trending toward these days.
Instead of taking advantage of what would normally be a bull market, public E&Ps are falling on the side of responsibility and remaining primarily in the sideline in this seemingly robust time.
“[This year] oil hit $70 and you think people should be doing cartwheels to think the A&D market is incredibly robust like it was in 2016,” Lande said May 7 during the Energy Capital Conference hosted by Oil and Gas Investor. “In 2016 people were making the $40,000-acre acquisitions and getting rewarded for it.