U.S. Oil & Gas M&A Reaches Unprecedented Heights, But Mega-Deals Likely to Slow in 2024
A record-breaking $190 billion in mergers and acquisitions (M&A) marked 2023 for the U.S. oil and gas industry. Two mega-deals exceeding $60 billion each drove the fourth quarter surge, fueling comparisons to the late 1990s consolidation wave. While 2024 buyer interest remains, a smaller pool of targets means mega-deals likely won't be duplicated. Expect a shift towards more targeted acquisitions as the industry consolidates further.
U.S. oil and gas M&A set new records in 2023, exceeding $190 billion.
Mega-deals by Exxon and Chevron drove Q4 surge, ranking among largest ever.
Industry consolidation trend echoes late 1990s, creating supermajors.
Declining exploration and mature shale plays fueled acquisitions.
Permian Basin remained most sought-after region for deals.
2024 unlikely to see repeat of 2023 mega-deals due to limited targets.
Overall, 2023 marked a historic year for U.S. oil and gas M&A, paving the way for future consolidation within a more selective market.