XEC - CFRA's next oil E&P takeover targets share slow operations short debt runways

Today's confirmed deal for ConocoPhillips to acquire Concho Resources is the continuation of a small rush of oil-patch deals - which could kick off a long-overdue consolidation phase, CFRA notes in a dive into which targets could be next. Energy prices have been rangebound under $40/barrel (after staging a rally from April's pandemic-driven low), suggesting that spot pricing/the futures curve aren't too optimistic about crude pricing prospects. The EIA forecasts WTI Crude averaging $39/bbl in 2020 and just $45/bbl in 2021 (among the worst years in recent history on those measures). And even though broader-market equities have recovered well over six months, Energy has had "no place to hide," with even the best-performing sub-industry - Storage and Transportation - down nearly 40% year-to-date. Capital appreciation in Drilling is down more than 78%. Lenders are "beginning to sour" on the industry as well, CFRA notes, pointing to banks increasingly aware of

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CFRA's next oil E&P takeover targets share slow operations, short debt runways