US Energy Sector Mergers Keep Momentum Going as Companies Build Reserves

US Energy Sector Mergers Keep Momentum Going as Companies Build Reserves

A Record-Breaking Year for US Energy Mergers

The U.S. energy sector is poised to wrap up 2024 with another strong round of mergers and acquisitions, continuing the momentum from a record-breaking 2023 where deal values hit $250 billion. As oil and gas companies focus on boosting their reserves, significant transactions have been announced, including deals worth $12 billion in Q3 2024 and approximately $8 billion in early November alone.

Delays and Challenges in the Sector

While the deals continue to flow, challenges persist, including regulatory hurdles such as antitrust regulations and contract arbitration, which have delayed some transactions. The ongoing consolidation in the sector is leading to fewer available assets and companies for potential acquisitions.

Key Deals in the US Oil and Gas Sector in 2024

The following are major energy deals that have taken place or been announced in 2024:

• Nov 14: Ovintiv acquires Montney assets from Paramount Resources for $2.38 billion (Cash deal, closing in Q1 2025)
• Nov 14: FourPoint Resources acquires Ovintiv's Unita resources for $2 billion (Cash deal, closing in Q1 2025)
• Nov 13: Coterra Energy acquires assets from Avant Natural Resources and Franklin Mountain Energy for $3.95 billion (Cash and stock, closing in Q1 2025)
• Oct 29: Equinor acquires EQT's natural gas assets in Pennsylvania for $1.25 billion (Cash deal, closing in Q4 2024)
• Aug 28: ONEOK acquires Global Infrastructure Partners' stake in EnLink Midstream and Medallion Midstream for $5.9 billion (Cash deal, closed)
• May 29: ConocoPhillips acquires Marathon Oil for $22.5 billion (All-stock deal, closing in Q4 2024)
• Jan 22: Sunoco acquires NuStar Energy for $7.3 billion (All-stock deal, closed)

Summary of the 2023 Major Energy Deals

2023 also saw some of the largest transactions in the U.S. energy sector:

• May 14, 2023: ONEOK acquires Magellan Midstream Partners for $18.8 billion (Cash and stock, closed)
• Oct 11, 2023: Exxon Mobil acquires Pioneer Natural Resources for $59.5 billion (All-stock, closed)
• Oct 24, 2023: Chevron acquires Hess Corp for $53 billion (All-stock, delayed timeline)
• Dec 11, 2023: Occidental Petroleum acquires CrownRock for $12 billion (Cash and stock, closed)