2024's Oil & Gas Mega-Mergers Fuel Industry Transformation
2023 was a whirlwind of mega-mergers in the oil and gas industry, with giants like Exxon, Chevron, and Occidental snapping up prime assets. Just as the dust settles, 2024 roars in with yet another acquisition, APA Corporation joining the fray. Prepare to dive into a year where industry titans continue their high-stakes dance, reshaping the oil and gas landscape one billion-dollar deal at a time. This year promises not just consolidation, but a fundamental shift in the power dynamics of the black gold game.
In October, Exxon announced a deal to buy Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion.
Weeks later, Chevron said it would buy Hess Corporation in an all-stock transaction valued at $53 billion with a total enterprise value, including debt, at $60 billion.
Chevron had already made an acquisition in 2023, buying shale firm PDC Energy in an all-stock transaction valued at $6.3 billion, gaining high-quality assets adjacent to its positions in the Denver-Julesburg (DJ) and the Permian Basins.
Occidental Petroleum also hopped on the M&A bandwagon by acquiring Permian oil and gas producer CrownRock for cash and stock in a deal valued at around $12 billion, including debt.
The acquisition will boost Occidental’s premier Permian portfolio with the addition of around 170,000 barrels of oil equivalent per day (boed) of high-margin, lower-decline unconventional production in 2024, as well as approximately 1,700 undeveloped locations, Oxy said .
As soon as 2024 began, APA Corporation announced it would buy Permian oil and gas producer Callon Petroleum Company in an all-stock transaction valued at around $4.5 billion, including Callon’s net debt.