(WO) – The first quarter was the largest in global upstream deals in five years, but the industry could see an additional $150 billion in mergers and acquisitions (M&A) deals over the remainder of 2024. There is.
Global M&A deal value has already surpassed the $64 billion mark this year, representing the strongest first quarter performance since 2019, driven primarily by consolidation in the US shale patch. This was an increase of 145% compared to the first quarter of 2023.
While the Permian Basin has accounted for most of the recent deals, other shale operations are expected to soon attract significant investment, with about $41 billion of non-Permian Basin opportunity on the market.
This includes Bakken-focused Grayson Mill Energy, Uintah-focused XcL Resources, ExxonMobil’s Bakken portfolio, EQT’s remaining non-operated Marcellus portfolio, and certain assets from Shell and BP. Includes potential sale of Haynesville assets.
Portfolio adjustments at ExxonMobil, Chevron, Occidental Petroleum (Oxi) and Diamondback Energy are expected to spur near-term M&A activity. All of these companies have recently made major acquisitions and are now planning to sell non-core assets, paving the way for regional upstream growth.
For example, Chevron plans to sell about $10 billion to $15 billion of assets by 2028, while Oxy plans to sell about $4.5 billion to $6 billion of assets.
The Permian has recently been the focus of M&A activity, but that focus is waning as available assets in the basin become scarce. But appetite remains strong, and deal-hungry players are looking outside the Basin for acquisitions. A shift in power could occur as non-Permian assets take center stage in future North American deal pipelines.
