Oil and Gas M&A Outlook

We have entered a period of accelerated M&A activity, with two global megadeals leading the way: ExxonMobil’s $59.5 billion purchase of Pioneer Natural Resources and Chevron’s $53.0 billion acquisition of Hess.

Over the previous 21 months, we’ve seen an increase in activity, and an increase in overall deal value while companies maintain fiscal discipline demanded by investors.  The list below represents M&A activity since the second quarter of 2022.

What is driving the uptick in deals?  Strong commodity prices over the previous few years have allowed companies to strengthen their balance sheets, fueling the M&A trend.  Additionally, continued conflicts in the Middle East and the Russian/Ukraine War as well as OPEC+’s extension of production cuts indicate that commodity prices will remain at current levels or increase over the next year. Companies also expect higher natural gas demand as the U.S. continues to build more LNG export facilities. 

Since companies expect to see stable or increased commodity prices, and with continued international conflict, and with the appearance that the energy transition is farther off than originally expected, we expect to see continued M&A activity as companies build their inventories.

About Schneider Downs Energy & Resources Services

The Schneider Downs Energy & Resources industry group provides specialized financial advice and services to our clients in the oil and gas, mining and aggregates, forest products and alternative fuel and energy industries throughout the Columbus and Pittsburgh regions. Our extensive knowledge of industry issues enables us to provide proactive audit, tax and management consulting services.  

To learn more, visit our Energy and Resources Industry Group page.