1. The strong will devour the weak. 2016 will be an ugly market for a lot of producers and midstream companies. About the only strategy available to weak companies is to hunker down and hold on tight. Some won’t make it. As distressed asset holders run out of options, asset valuations will come down to levels where deals can be done. For strong buyers, a few of those once-in-a-lifetime opportunities will be out there. The key to success will be proper valuations, based on a pragmatic view of energy markets over the next few years. Because many of those investments will only provide opportunities to lose more money.