Dealmaking in the U.S. upstream oil and gas industry hit $105 billion in 2024, the third highest annual total ever, but activity slowed in the second half as buyers found fewer targets
Dealmaking in the U.S. upstream oil and gas industry hit $105 billion in 2024, the third highest annual total ever, but activity slowed in the second half as buyers found fewer targets to acquire, consultancy Enverus said on Wednesday.
Last year's total deal value fell sharply behind the whopping $192 billion in mergers and acquisitions done in 2023, which included the $60 billion combination of Exxon Mobil XOM.N and Pioneer Natural Resources.
The Permian remained the most desirable acquisition target, but buyers are also looking further afield as opportunities there dry up, according to Enverus' report.
"We are going to be in for some interesting surprises this year in terms of operators looking at regions and plays we wouldn't have expected," Enverus principal analyst Andrew Dittmar said in an interview.
"For buyers considering acquiring one of the remaining Permian targets, the question will be if the quality and resource expansion upside is worth the price of admission,” Dittmar said in the report.
For many smaller E&Ps companies the decision is likely to be to look outside of the Permian.
Mature shale plays like the Williston Basin in North Dakota and Eagle Ford in south Texas offer an alternative and are getting
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