US Oil and Gas M&A Activity Tripled in 2024 Despite Lower Prices: Report

The new report released on Tuesday shows that mergers and acquisitions (M&A) activity in the U.S. oil and gas sector surged threefold last year, even as commodity prices remained lower than the 2022 highs. This marks a significant strategic shift in the industry, as major energy companies focused on improving efficiency and profits through consolidation.

The dramatic increase in dealmaking reflects a pivot away from the recent industry trend of prioritizing shareholder returns over growth. Energy companies, flush with cash, are now aiming to drive operational efficiency through greater scale.

A wave of sector‑wide consolidation has been led by megadeals involving some of the largest players, including Exxon Mobil, Diamondback Energy, and ConocoPhillips. “It’s a relook at process, tools, workforce and everything around your operations,” said Bruce On, partner at EY’s strategy and energy transactions group.

By the Numbers

• Leading energy companies spent $206.6 billion on M&A in 2024, a sharp increase from $47.9 billion the previous year, according to an Ernst & Young (EY) study.
• Dividend and share repurchase payments dropped by about 25% to $29.2 billion last year.
• Spending on exploration and development declined 7% year‑on‑year, totaling $85.5 billion.
• Sector profits fell by 10% to $74.8 billion, less than half the record profits seen in 2022, mainly due to softer commodity prices.
• Exxon Mobil emerged as the biggest acquirer in 2024, with property acquisition costs totaling $84.5 billion. The company’s acquisition of U.S. shale oil producer Pioneer Natural Resources, first announced in October 2023, was completed in May 2024 for $60 billion.

Bhupendra Singh Chundawat

Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands‑on reporting and editorial leadership in the fast‑evolving world of technology.

US oil and gas MA activity tripled in 2024 despite lower prices, report

A new report shows that U.S. oil and gas mergers and acquisitions surged threefold in 2024, even as commodity prices fell from 2022 highs. Major energy firms, led by Exxon Mobil, used the extra cash to pursue consolidation and operational efficiency, driving M&A spending to $206.6 billion and tripling the volume of deals compared to 2023.