U.S. oil and gas company consolidation had a banner year in 2024, with the value of mergers and acquisitions jumping 331 percent compared with a year earlier, according to a new study from Ernst & Young.
The consulting and advisory firm found that fossil fuel companies spent $206.6 billion snatching up competitors last year, even as the amount spent on exploring for new oil and gas reserves fell 49 percent. One theme for oil and gas producers: efficiency.
“This is a defining moment for the U.S. upstream sector,” said Pat Jelinek, EY’s leader for the Americas oil, gas and chemicals sector, in a statement this week. “Fewer, stronger players are emerging, and they are better capitalized, more efficient and laser-focused on resilient growth.”
The study arrived after multiple blockbuster deals made headlines across the industry. Exxon Mobil in 2023 announced it would acquire Pioneer Natural Resources for about $60 billion, a deal that closed in 2024. Chevron closed on its deal to acquire Hess for $53 billion in July. Natural gas behemoth Chesapeake Energy acquired rival Southwestern Energy in a $7.4 billion stock deal, creating a new company called Expand Energy.
