By OGJ editors
HOUSTON, Jan. 31 -- Exploration and production executives in an informal survey said they expect oil and gas prices to remain strong and merger and acquisition activity to continue.
Wayne Andrews, a Houston analyst with Raymond James & Associates Inc., St. Petersburg, Fla., said he surveyed about 40 E&P and oil service executives during the North American Prospects Expo in Houston.
The group's forecast for the 2005 average gas price on the New York Mercantile Exchange was $6.52/Mcf, with a high of $8.80/Mcf and a low of $4.90/Mcf, Andrews said. The group's average 2005 oil forecast was $44.22/bbl, with a high of $59.60/bbl and a low of $38/bbl.
M&A outlook
Merger and acquisition activity experienced "a massive upsurge over the past 12 months," Andrews said.
"The general view was that such activity may not necessarily maintain last year's break-neck pace but that it would nonetheless continue. Most companies still emphasize asset deals, though corporate M&A remains an option for many large-capitalization and mid-capitalization producers," he said.
During the last year, both asset and corporate deals generally emphasized either the Rockies or the Permian basin.
Executives told Andrews that they are looking for a continuation of M&A activity because of huge amounts of cash being generated by E&P companies and because of companies' desires to boost prospect inventories.
