Oil and gas deals made global headlines throughout 2024 as industry players looked to secure a competitive cost of supply through mergers and acquisitions (M&A).
While industry deals in 2024 continued 2023’s overall trend of consolidation, deal value dropped significantly with last year’s biggest M&A reaching $60bn – a stark contrast to 2024’s $26bn.
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Raj Shekhar, oil analyst at GlobalData, Offshore Technology’s parent company, said that “consolidation in shale, with larger companies acquiring smaller ones in prominent basins like the Permian, remained the key theme”.
Another key trend was a growing interest in service and midstream companies. “Service companies were acquired to enhance market dominance in the evolving energy landscape,” confirms Shekhar. “The interest in midstream companies can be attributed to the pursuit of vertical integration to improve profitability.”
Meanwhile, in the petrochemical sector acquisitions focused on diversification, with companies seeking to expand into high-growth areas such as specialty chemicals, advanced materials and sustainable solutions.
Diamondback Energy completes $26bn merger with Endeavor Energy Resources
In September, Diamondback Energy merged with Endeavor Energy Resources, making it the third-largest producer in the Permian Basin behind EOG Resources and ExxonMobil.
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By GlobalDataThe newly formed organisation is projected to produce 816,000 barrels of oil and gas daily and will have a pro forma footprint of around 838,000 net acres.
ConocoPhillips finalises $22.5bn Marathon Oil acquisition
In November, ConocoPhillips announced the completion of its acquisition of Marathon Oil Corporation for $22.5bn, taking on $5.4bn in debt.
Conoco expects share repurchases exceeding $20bn within the first three years, with more than $7bn in the initial full year, as well as two billion barrels of compatible resources.
Chesapeake and Southwestern Energy agree on $7.4bn merger
In October, US gas company Chesapeake Energy‘s acquisition of Southwestern Energy for $7.4bn closed, creating a strong natural gas portfolio.
The new company is expected to have a production rate of approximately 7.9 billion cubic feet (bcf) equivalent per day, with more than 5,000 gross locations and a 15-year inventory.
Sunoco acquires NuStar Energy for $7.3bn
In May, US fuel distribution company Sunoco’s acquisition of NuStar Energy closed for $7.3bn.
NuStar provided Sunoco with liquids terminal and pipeline operations covering more than 15,200km of pipeline and 63 terminal and storage facilities.
The deal formed part of Sunoco’s plan to diversify and scale up its portfolio, with anticipated cost savings of $150m by the third-year post-closure.
Chevron agrees to sell assets to Canadian Natural Resources for $6.5bn
In October, Chevron agreed to sell its assets in Alberta, Canada, to Canadian Natural Resources for $6.5bn (C$9.35bn).
The transaction included a 20% non-operated interest in the Athabasca Oil Sands Project and a 70% operated stake in the Duvernay shale and related assets.
The sale aligns with Chevron’s goal to divest $10–15bn in assets by 2028 as part of its plan to optimise its global energy portfolio.
EQT completes Equitrans Midstream acquisition for $5.5bn
In July, US-based natural gas producer EQT finalised its $5.5bn acquisition of Equitrans Midstream, creating a vertically integrated natural gas business.
The merger values the combined entity at $35bn, with EQT shareholders owning approximately 74% and Equitrans shareholders the remaining 26%.
The combined company boasts 27.6 trillion cubic feet equivalent of proved reserves and a daily net production of 6.3bcf equivalent, as well as more than 2,000 miles of pipeline infrastructure.
Devon Energy acquires Grayson Mill’s US assets for $5bn
Also in July, Devon Energy and Grayson Mill Energy signed an asset deal valued at $5bn in cash and stock.
Devon expects the acquisition to sustain a production level of around 100,000 barrels of oil equivalent per day (boepd) by 2025 and extend its inventory life in the Williston Basin by up to ten years, maintaining a steady development pace with three operated rigs.
APA acquires Callon Petroleum for $4.5bn
In April, US oil and gas company APA completed its definitive agreement to acquire Callon Petroleum in an all-stock transaction valued at approximately $4.5bn.
APA said the acquisition provides it with additional scale across the Permian Basin, particularly in the Delaware Basin, where Callon holds nearly 120,000 acres.
On a pro forma basis, the deal boosted APA’s total production to more than 500,000boepd and increased its enterprise value to more than $21bn.
Chord Energy completes $3.8bn acquisition of Enerplus
In June, US oil and gas company Chord Energy finalised its acquisition of Canadian company Enerplus, creating an exploration and production company focused on the Williston Basin.
The combined entity is valued at $11bn (C$15.83bn) with a low-cost inventory spanning approximately 1.3 million net acres.
Oneok acquires 43.8% stake in EnLink from Global Infrastructure Partners for $3.3bn
In October, US midstream operator Oneok completed the acquisition of Global Infrastructure Partners’ entire interest in EnLink for approximately $3.3bn.
The following month, Oneok signed an agreement to acquire all remaining publicly held common units of EnLink Midstream through a tax-free transaction valued at $4.3bn.
The transaction consolidates Oneok’s control over EnLink, which offers integrated midstream infrastructure services for natural gas, crude oil and natural gas liquids, as well as CO₂ transportation for carbon capture and sequestration.
