Calgary-based Enverus Intelligence Research said recently that upstream M&A (merger and acquisition) activity in 2022 resulted in transaction values down about 20 percent from pre-pandemic averages, and the volume of deals fell to a nearly two-decade low. Activity was driven by large companies targeting the highest quality assets in billion-dollar-plus deals.
Andrew Dittman, director at Enverus, said Jan. 24, “Large-cap public companies like Devon Energy, Diamondback Energy and Marathon Oil dominated deal activity in the back half of 2022. These buyers have the balance sheet strength and favorable stock valuations to take advantage of large, high-quality offerings from private sellers. They can strike deals that are both accretive to current cash flow and extend their runway of drilling locations.”