Mergers and acquisitions (M&A) activity in the US oil and gas sector surged threefold in 2024, reaching $206.6 billion, despite lower commodity prices compared to 2022 highs. This shift reflects a strategic pivot by major energy companies toward operational efficiency and scale, moving away from a focus on shareholder returns. Exxon Mobil was the largest acquirer, spending $84.5 billion, including the $60 billion acquisition of Pioneer Natural Resources completed in May 2024. Dividend and share repurchase payments dropped by 25% to $29.2 billion, and spending on exploration and development declined 7% year-on-year to $85.5 billion. Sector profits fell 10% to $74.8 billion, less than half of 2022's record levels.

US oil and gas mergers and acquisitions surged in 2024, reaching $206.6 billion — more than tripling the $47.9 billion recorded in 2023. This growth was driven by companies reinvesting in scale rather than returning profits through dividends and buybacks. Exxon Mobil led the trend with its $60 billion acquisition of Pioneer Natural Resources, bringing its annual deal value to $84.5 billion. Despite softer sector profits and falling exploration spending, integration costs remain low at 3.5% of target revenue, facilitating large transactions. In 2025, deal activity declined sharply, with first-quarter value at $17 billion and second-quarter value dropping to $13.5 billion, nearly 60% below the first half of 2024. The slowdown reflects a standoff between cautious buyers and reluctant sellers amid weaker commodity prices. Strategic diversification, especially into natural gas and LNG export capacity, is a key theme, with EOG Resources' $5.6 billion acquisition of Encino Acquisition Partners expected to boost EBITDA and cash flow. The long-term outlook suggests a shift toward fewer, larger, and more diversified energy firms focused on both production and low-carbon technologies.

Mergers and acquisitions in the U.S. oil and gas sector more than quadrupled in 2024, reaching $206.6 billion, according to an Ernst & Young study. Despite softer commodity prices, energy companies increased spending to improve operational efficiency and profits. Exxon Mobil was the largest buyer, spending $84.5 billion on property acquisitions, including the $60 billion purchase of Pioneer Natural Resources completed in May 2024. The sector saw a 25% reduction in dividend and share repurchase spending, with exploration and development expenditure down 7% year-on-year to $85.5 billion. Overall profits fell 10% to $74.8 billion in 2024, down from record levels in 2022.

Mergers and acquisitions in the U.S. oil and gas sector tripled in 2024, reaching $206.6 billion, despite softer commodity prices. Energy companies increased spending to improve operational efficiency and profits, shifting from a focus on shareholder returns to strategic growth through consolidation. Key deals were led by major players such as Exxon Mobil, Diamondback Energy, and ConocoPhillips. Exxon Mobil was the largest acquirer, spending $84.5 billion on property acquisitions, including the $60 billion purchase of Pioneer Natural Resources completed in May 2024. Overall, companies reduced spending on dividends and share repurchases by 25% to $29.2 billion, while exploration and development spending declined 7% to $85.5 billion. Profits fell 10% to $74.8 billion due to lower commodity prices.

A 2025 EY study of 40 major U.S. energy companies reveals a significant shift toward mergers and acquisitions (M&A), with total capital expenditures reaching $292.1 billion—up 108% year-over-year—driven primarily by $206.6 billion in M&A activity. Acquisitions are concentrated in the Permian, Eagle Ford, and Bakken basins, with 42% of acquisition value targeting unproven assets. Proven oil reserves increased by 5% to 34.7 billion barrels, driven largely by acquisitions, while natural gas reserves declined by 4% to 182 Tcf due to falling Henry Hub prices. Unit production costs remained stable, and the study highlights efficiency gains and cost divergence among peer groups. ExxonMobil emerged as the largest acquirer, spending $84.5 billion on assets, followed by Diamondback Energy and ConocoPhillips. Shareholder returns declined slightly, but were maintained through share-based settlements in M&A transactions.