With rapid payout and strong cash flow, the Gulf of Mexico (GOM) has emerged as the “epicenter” of merger and acquisition (M&A) activity, accounting for half of the top 10 deals involving U.S.-based exploration and production (E&P) companies year-to-date, Raymond James analysts wrote in their latest “Stat of the Week.” Overall, M&A activity within the oil and gas sector continues to heat up, with more than $18 billion in announcements involving U.S.-based E&Ps so far this year.
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With traders returning from the long holiday weekend, the bearish move still appeared to be intact Tuesday as natural gas futures prices continued to tumble. After opening under $11 at $10.750, February natural gas managed no higher than $11 before settling at $10.626, down 59.9 cents on the session.
Although still very much intact, the uptrend which has carriedprices higher for much of the year suffered a defeat yesterday, astraders liquidated positions on the open to create a potentiallybearish technical scenario. The January contract took the sell-offsquarely on the chin, tumbling $1.00 lower to evoke a lock-limitdown trading halt at about 10:15 a.m. (ET) Tuesday. Afterre-opening 15 minutes later with new two-dollar limits in eitherdirection, the market continued lower to finish at $8.145, down$1.268 for the session.