US, European Companies Strike Deals to Further Consolidate Oil Industry -- At a Glance
October 23 2023 - 11:09AM
Dow Jones News
Large energy players in the U.S. and Europe are striking deals
with smaller companies this year, consolidating the oil industry.
The deal frenzy comes at a time when oil companies are eager to
spend the large windfall of cash made last year when oil-and-gas
prices hit multi-year highs following Russia's invasion of Ukraine.
Some of these moves are also seen as a vote of confidence in the
long-term resilience of fossil-fuel demand, despite policymakers'
growing efforts to promote low-carbon energy.
--Chevron on Monday agreed to acquire medium-sized rival Hess in
an all-stock deal valued at $53 billion. Chevron said the
acquisition would upgrade and diversify its portfolio, and that
Hess would add about 10% to its overall oil-and-gas production of
about 3 million barrels a day. In May, Chevron also agreed to buy
shale driller PDC Energy, which has sizeable operations in Texas
and Colorado, for $6.3 billion.
--Exxon Mobil struck a nearly $60 billion deal earlier this
month to buy exploration-and-production company Pioneer Natural
Resources, cementing its status as the dominant player in the U.S.
fracking industry, now centered in West Texas, where Pioneer has
more places to drill than almost all of its rivals. In July, Exxon
Mobil also scooped up Dunbury, a Dallas-based pipeline operator and
oil producer running an extensive CO2 transport network in the
U.S., for $4.9 billion.
--Italy's Eni and Norway's Var Energi agreed to acquire Neptune
Energy's global and Norway businesses in June for around $4.9
billion including debt. The Italian oil major said the deal would
support its goal to increase the share of gas in its portfolio by
the end of the decade.
--BP and Abu Dhabi National Oil Co., also known as ADNOC, have
made a nonbinding offer to acquire Israeli gas producer NewMed
Energy in March, aiming to form a joint venture focused on gas
development in areas of mutual interests, such as the East
Mediterranean.
--U.S. pipeline operator Oneok agreed in May to buy smaller
rival Magellan Midstream Partners for about $14 billion, forming
one of the biggest U.S. companies involved in transporting and
storing energy. Oneok has a vast network of storage terminals and
natural gas and liquid pipelines, while Magellan owns almost 10,000
miles of pipelines carrying refined products with dozens of
interconnected storage facilities in the U.S.
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(END) Dow Jones Newswires
October 23, 2023 10:53 ET (14:53 GMT)
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