Permian yet again drives deal activity, but
unlikely to maintain fast pace
CALGARY,
AB, April 23, 2024 /PRNewswire/ -- Enverus
Intelligence Research (EIR), a subsidiary of Enverus, the most
trusted generative AI and energy-dedicated SaaS company, is
releasing its summary of 1Q24 upstream M&A activity. Following
last year's blockbuster $192 billion
in U.S. upstream consolidation, 1Q24 would be on track to surpass
that record with $51 billion in
announced deals. However, EIR is pumping the brakes on another
record-setting year as deal activity has slowed significantly in
March and Q2 appears to have already lost momentum.
"Deals at the start of 2024 were driven by the same factors that
led to last year's marathon of mergers, foremost among them a
desire to lock up high-quality inventory when it is available,"
said Andrew Dittmar, principal
analyst at EIR. "Most of that inventory is going to be found in the
Permian, so it is unsurprising the prolific basin was yet again the
primary driver for M&A within oil and gas."
Headlining consolidation in Q1 was privately held Endeavor
Energy Resources' sale to publicly held Diamondback Energy. The
$26 billion buyout was the largest
sale of a private company Enverus has tracked. "Endeavor was a
unique opportunity to acquire a legacy family-owned E&P with
leases in the core of the Midland Basin acquired decades before
Diamondback, or many of the other familiar shale names, were even
in business," said Dittmar.
Companies are likely to be looking beyond the Permian for future
M&A opportunities though because of both higher fragmentation
in other plays and lower prices. The Eagle Ford and SCOOP | STACK
are two plays with proportionally higher ownership by private
equity-backed E&Ps likely to welcome an offer to be acquired by
a public company. Both plays are also interesting from a commodity
diversification perspective, with a mix of oil and gas production
and an opportunity to capitalize on an eventual gas price
recovery.
Members of the media should use our new Request Media Interview
option on the Enverus Newsroom page to schedule an interview with
one of our expert analysts.
About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of
Enverus that publishes energy-sector research focused on the oil,
natural gas, power and renewable industries. EIR publishes reports
including asset and company valuations, resource assessments,
technical evaluations and macro-economic forecasts; and helps make
intelligent connections for energy industry participants, service
companies and capital providers worldwide. EIR is registered with
the U.S. Securities and Exchange Commission as a foreign investment
adviser. Enverus is the most trusted, energy-dedicated SaaS
platform, offering real-time access to analytics, insights and
benchmark cost and revenue data sourced from our partnerships to
98% of U.S. energy producers, and more than 35,000 suppliers. Learn
more at Enverus.com.
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SOURCE Enverus