Executive Summary
Oil and gas prices in 2018 have been steadily increasing in the midst of strong demand and constrained supply, and the U.S. energy sector is at the center of this focus. Forecasts from the International Energy Agency (IEA) show that the U.S. is expected to supply almost 60% of the demand growth over the next 5 years as conventional discoveries outside of the U.S. have hit historic lows since the early 1950s.
This quarter we take a closer look at the Bakken, where breakeven prices recently fell to around $42 per barrel. Production activity has picked up in the region as rig counts reached heights unseen since 2015. Increased production, lower breakeven prices, and sufficient infrastructure have led to an uptick in transaction activity and an increase deal multiples.
