A&D Activity in 2015 sank to its lowest level since 2009. With capital flowing into the sector and participation in broad sales processes at record levels, activity was depressed by limited asset supply. In theory, 2015 should have been a banner year for A&D activity-falling prices would depress asset values, forcing operators to part with core properties in order to avoid defaulting on their loans. While some companies have sold non-core assets to generate cash, the expected wave of distressed assets is still yet to be seen. Companies will not part with core assets until prices recover or their financial position forces them to do so.
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