Oil E&P valuations rise as scale and scarcity drive consolidation

Oil E&P valuations are rising despite flat prices, driven by scarcity, inventory depth, and scale. The Devon-Coterra merger is cited as an example of ongoing shale consolidation.

Chevron has pulled back from recent highs, but oil remains elevated and analysts support a continued upside, suggesting the setup for energy equities remains favorable.

Together, the notes point to a broader trend in the sector where upward valuation pressure in upstream assets coincides with consolidation activity and potential buying opportunities in major US producers.