HOUSTON—In 2016, Permian Basin A&D had an unmistakable rah-rah element: each successive, high-price deal built on the last, like storied baseball player Joe DiMaggio’s streak of 56 consecutive hits.David Deckelbaum, senior E&P analyst at KeyBanc Capital Markets, said 2016 had the feel of the dot-com boom.“Back in the 2000s, every Thursday or so there was a new tech IPO and you just played it because the last one worked the week before,” Deckelbaum said at the KeyBanc Capital Markets Breakfast in February.Permian deals gained similar traction. “That was the logic going into it. You do it because it works,” he said.Now that E&Ps are digesting their deals, it appears not every company fared equally well at the M&A feast. E&Ps that acquired acreage through Permian bolt-ons and other deals have generally been rewarded by the market. Companies that made in-basin transactions are up about 14%.
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