Companies

U.S. upstream dealmaking slowed significantly during the third quarter, with transaction value falling to only $8 billion after a total of $86 billion in the previous four quarters, 1Derrick reported Wednesday.

Lower 48 exploration and production (E&P) companies, particularly those with Permian Basin exposure, are loosening their purse strings this year, while some of the largest operators are trimming investments as capital-intensive projects wind down, according to Wood Mackenzie.

Peoples Natural Gas has struck a deal to acquire Delta Natural Gas of Winchester, KY, which serves 36,000 customers in central and southeastern Kentucky.

While the oil and natural gas sector recovery is in progress, there is a danger of a “sharp snap back” in costs for oilfield equipment and services, warns consultancy AlixPartners in a new study. Further, companies that have not yet restructured are in for tough sledding as the competition has gotten leaner and more efficient.

A long-time fixture among Williston Basin exploration and production companies, Denver-based SM Energy Co. said earlier this month it is selling its remaining Bakken assets in North Dakota to concentrate on Texas acreage. But others are staying in the Bakken.

A modest six land-based rigs returned to service in the United States during the week ending Friday, according to Baker Hughes Inc. That was enough to push the current tally to 640, five rigs past the year-ago level. More rigs are coming back this year, and that will mean increased pricing power for oilfield services companies, analysts said.

A modest six land-based rigs returned to service in the United States during the week ending Friday, according to Baker Hughes Inc. Two of those returning were in the Haynesville, which has surpassed its year-ago activity level.

EQT Corp. and Range Resources Corp. on Tuesday rebuffed an investment firm’s end-of-the-year pitch urging the companies to merge in a deal that it argued would create “the largest and best-positioned natural gas producer in the United States.”

With oil and natural gas prices rising and rigs coming off the stacks, the U.S. energy sector is poised for a comeback of sorts in 2017, but operators still face headwinds that may hinder growth.