Calgary-based Enverus Intelligence Research said last week upstream activity in mergers and acquisitions reached $105 billion in 2024 – the third highest total tracked by Enverus. That trailed only the record-setting $192 billion in 2023 and $108 billion in 2014. Activity did tumble in the second half of 2024; activity was only $9.6 billion in 2024Q4 – the fourth straight decline in quarterly value.
Andrew Dittmar, principal analyst at EIR, said Jan. 29, “Deal value and volume continued to drop in the final quarter of 2024 from its peak at the end of 2023 as buyers grappled with fewer M&A targets to pursue. There also are quite a few larger E&Ps working to integrate their previous deals before returning to market to acquire more. Increased volatility in oil prices also may have deterred some buyers while there is rising enthusiasm for gas and gas-weighted assets to feed burgeoning demand from LNG and data centers.”
The largest deal of Q4 was Coterra’s purchase of Avant Natural Resources and Franklin Mountain Energy in Delaware Basin for a combined $3.95 billion. The two deals drove the Permian to account for more than 40 percent of total quarterly deal value. Dittmar added, “The Permian remains at the top of the list for where buyers would prefer to add assets, but it’s also the most challenging market to buy into from the perspective of available targets and sellers’ expectations on pricing.”