As in prior down-cycles, the 2016 environment is poised for a wave of consolidation in energy, most notably within the upstream space which remains heavily disaggregated across the US. While M&A activity can be expected to gain pace amongst both the Majors and E&Ps, the motivations of each are disparate. For the former, the main drivers are a matter of reserve preservation and reducing headcount, while the latter group is focused on operational synergies and maximizing leverage against service providers. As further detailed in the attached note, we believe those E&Ps who can consolidate within a single basin are likely to achieve the greatest upside. Thus, the rise of the Basin Dominator E&P, a theme we predict to take hold in the M&A markets as operators fight for survival.