The oil and gas industry is one of the largest sectors in the world, bringing on average $3.5 trillion in revenue annually. By the end of 2024, industry revenue is expected to reach $4.2 trillion.
The global oil and gas sector also significantly impacts transportation, manufacturing, agriculture, chemicals, power generation, and more industries, shaping their market trends and development.
Such steady growth and its importance in the world economy make the oil and gas sector attractive for investing and active deal-making.
This article investigates oil and gas M&A activity and lists the top 10 deals in the industry in recent years.
M&A energy sector overview
The oil and gas industry, as a big part of the energy sector, is always impacted by geopolitical, economic, regulatory, and technological factors.
That’s why deal-making in the oil and gas industry jumped 57% in 2023, driven by large cash flows as a result of energy price spikes caused by Russia’s invasion of Ukraine.
The first half of 2024, however, saw a relative slowdown in M&A activity and strategic alliances. Still, deal-making in this sector remains lively:
- During Q1 2024, the oil and gas field saw 251 deals announced with a disclosed value of $101 billion. This is a 7% (in deal volume) and 48% (in deal value) fall QoQ (quarter on quarter).
- During Q2 2024, the sector experienced 240 announced deals with a global disclosed value of $67 billion, a 4% and 34% decrease QoQ.
- Q3 2024 witnessed 334 deals in the oil and gas sector worth $84 billion. This is a 4% drop in deal value QoQ and no changes in deal volume.
Despite a slight uplift, the end of 2024 isn’t expected to show more growth.
In the second half of 2024, deal flow will likely slow, as players, following historic norms, pause a bit to evaluate the potential outcome of the US presidential election in November. But we expect this to be a relatively brief pause as participants quickly factor in any election impacts and move forward based on the business fundamentals
Bruce On
EY Strategy and Transactions Energy Partner
10 recent notable oil and gas mergers and acquisitions
Now, let’s review major M&A deals in the energy sector for the last two years, listed from highest to lowest deal value.
1. ExxonMobil and Pioneer Natural Resources
Deal value: $60 billion
Year: 2023
Status: Completed
ExxonMobil, a leading provider of oil, gas, and petrochemical products in the US, announced its acquisition of Pioneer Natural Resources, a company involved in hydrocarbon exploration.
This all-stock deal, expected to enhance ExxonMobil’s presence in the Permian Basin, aligns with its strategy to produce more affordable, reliable energy. The acquisition aims to improve operational efficiencies, leverage advanced technologies, and increase oil and gas production, especially in the US, helping to meet growing energy demands.
The deal was completed in May 2024, with Pioneer’s former CEO Scott Sheffield being blocked from joining Exxon’s board due to claims he tried to coordinate with OPEC to increase oil prices.
2. Chevron and Hess
Deal value: $53 billion
Year: 2023
Status: Closing
Chevron Corporation explores, extracts, refines, and distributes oil and gas products globally, while also investing in renewable energy sources and low-carbon technologies to reduce environmental impact. In October 2023, it announced the acquisition of Hess, an independent production and exploration company of crude oil and natural gas, in an all-stock transaction.
This oil and gas M&A transaction adds valuable assets to Chevron’s portfolio, including the high-margin Stabroek Block in Guyana and Hess’s Bakken shale assets.
The US Federal Trade Commission (FTC) approved the acquisition, but barred Hess’s CEO, John Hess, from joining Chevron’s board over concerns about possible anti-competitive behavior.
3. Diamondback Energy and Endeavor Energy
Deal value: $26 billion
Year: 2024
Status: Completed
The merger between Diamondback Energy and Endeavor Energy was announced in February 2024.
The deal aims to create a stronger, independent oil and gas company with a focus on the Permian Basin. The merger combines the companies’ assets to increase production efficiency and expand their influence in this key US oil region.
Today, Diamondback is not only bigger, but better. Our high-quality inventory located in the heart of the Permian Basin gives us the running room to do what we do best: turn rock into cash flow
Travis Stice
Chairman and CEO of Diamondback upon the deal’s closure in September 2024
4. ConocoPhillips and Marathon Oil Corporation
Deal value: $22.5 billion
Year: 2024
Status: Pending
ConocoPhillips, an exploration and production (E&P) company, announced its acquisition of Marathon Oil Corporation, a petroleum company, in May 2024.
By combining resources, ConocoPhillips aims to reduce expenses and operate more effectively, especially outside the crowded Permian Basin, signaling a shift toward fewer but stronger players in the energy market.
ConocoPhillips also expects this acquisition to be immediately accretive to cash flows, earnings, and return of capital per share. The companies expect the deal to close by the end of the year.
5. ONEOK and Magellan Midstream Partners
Deal value: $18.8 billion
Year: 2023
Status: Completed
ONEOK’s acquisition of Magellan Midstream Partners was announced in May 2023. And by September 2023 the deal was closed.
This merger combines ONEOK’s natural gas operations with Magellan’s network of oil pipelines and storage, creating a stronger energy transportation company. By joining forces, they aim to streamline services across oil and gas markets and increase value for investors.
6. Occidental Petroleum and CrownRock
Deal value: $12 billion
Year: 2023
Status: Completed
Occidental’s acquisition of CrownRock was announced in December 2023. In August 2024, the cash-and-stock deal was completed, with Occidental gaining valuable oil and gas assets in Texas’s Permian Basin.
By completing this transaction, Occidental adds assets that we believe make the best portfolio in our company’s history even stronger and more differentiated
Vicki Hollub
Occidental’s President and CEO
The purchase also included the addition of CrownRock’s $18 million debt onto Occidental’s balance sheet.
7. ChampionX and SLB
Deal value: $7.75 billion
Year: 2024
Status: Pending
SLB announced an agreement to acquire ChampionX in an all-stock deal in April 2024.
The merger aims to create a leader in energy transition, combining SLB’s technology with ChampionX’s chemical and production expertise. This strategic move is to broaden SLB’s service offerings and customer base, enhance operational efficiencies, and support sustainable energy initiatives.
The deal is now subject to regulatory approvals and is expected to close either by the end of 2024 or the beginning of 2025.
8. Energy Transfer and WTG Midstream
Deal value: $3.25 billion
Year: 2024
Status: Completed
Announced in May 2024, Energy Transfer’s acquisition of WTG Midstream was completed in July 2024.
This deal strengthens Energy Transfer’s position in the Permian Basin, adding WTG’s 6,000-mile pipeline network and eight gas processing plants with a total capacity of 1.3 billion cubic feet per day.
The deal’s expected benefits include increased cash flow and revenue from expanded processing, transport, and fractionation capabilities.
9. SM Energy, NOG and Uinta Basin
Deal value: $2.55 billion
Year: 2024
Status: Completed
NOG (Northern Oil and Gas) and SM Energy announced their acquisition of oil and gas assets in Utah’s Uinta Basin from XCL Resources, LLC in June 2024. The deal was finalized in October 2024.
SM Energy took an 80% stake, gaining operational control over 63,300 acres with high oil content, while NOG acquired 20%, expanding its drilling prospects. The acquisition includes 110 million barrels of oil in reserves and new joint development agreements.
10. Nabors Industries and Parker Wellbore
Deal value: $360 million
Year: 2024
Status: Announced
Nabor Industries’ acquisition of Parker Wellbore was announced in October 2024.
This deal combines Nabors’ advanced drilling technology with Parker’s global well services, creating a broader offering for oil and gas companies. The acquisition aims to expand Nabors’ international reach and strengthen its position in the well services market.
Companies expect the deal to close by early 2025, subject to regulatory approvals.
Get more examples of global M&A deals in our range of M&A deal blogs, including the largest acquisitions ever to telecom M&A deals and cybersecurity acquisitions examples.
Key takeaways
- Though the deal-making in the oil and gas sector has slowed in 2024, compared to 2023, M&A activity remained lively with several large transactions announced.
- The list of most notable recent oil and gas acquisitions includes ExxonMobil and Pioneer Natural Resources, Chevron and Hess, Diamondback Energy and Endeavor Energy, and more.
