Enverus Intelligence Research (EIR) analysts have provided an overview of merger and acquisition (M&A) activity within the U.S. upstream sector for both the fourth quarter and the entirety of 2023.

The final quarter of 2023 witnessed unprecedented activity, marking a historical high in observed M&A transactions within the U.S. oil and gas industry, totaling $144 billion. Over the course of the entire year, M&A deals amounted to $190 billion, also setting a new record.

Notably, two significant transactions significantly contributed to these figures: Exxon's acquisition of Pioneer Natural Resources for $65 billion and Chevron's purchase of Hess for $60 billion.

This surge in M&A activity is noteworthy considering the backdrop of a decade-long decline in investment in oil and gas exploration. Despite the identification of major shale oil fields in the U.S., investment in new wells has waned, with industry giants opting to acquire existing assets instead.

Analysts at Dittmar observed that the market is currently characterized by an imbalance, with more buyers than sellers, resulting in escalated prices.

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