Oil and Gas M&A Outlook

We have entered a period of accelerated M&A activity, with two global megadeals leading the way: ExxonMobil’s $59.5 billion purchase of Pioneer Natural Resources and Chevron’s $53.0 billion acquisition of Hess.

Over the previous 21 months, we’ve seen an increase in activity, and an increase in overall deal value while companies maintain fiscal discipline demanded by investors.  The list below represents M&A activity since the second quarter of 2022.

What is driving the uptick in deals?  Strong commodity prices over the previous few years have allowed companies to strengthen their balance sheets, fueling the M&A trend.  Additionally, continued conflicts in the Middle East and the Russian/Ukraine War as well as OPEC+’s extension of production cuts indicate that commodity prices will remain at current levels or increase over the next year. Companies also expect higher natural gas demand as the U.S. continues to build more LNG export facilities. 

Since companies expect to see stable or increased commodity prices, and with continued international conflict, and with the appearance that the energy transition is farther off than originally expected, we expect to see continued M&A activity as companies build their inventories.

About Schneider Downs Energy & Resources Services

The Schneider Downs Energy & Resources industry group provides specialized financial advice and services to our clients in the oil and gas, mining and aggregates, forest products and alternative fuel and energy industries throughout the Columbus and Pittsburgh regions. Our extensive knowledge of industry issues enables us to provide proactive audit, tax and management consulting services.  

To learn more, visit our Energy and Resources Industry Group page. 



You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2024 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Cracking the Value Creation Code: Key Considerations for the Value Creation Process
Cracking the Value Creation Code: Implementing the Value Creation Process
Cracking the Value Creation Code: Laying the Foundation
2024 Energy and Natural Resources Legislative and Regulatory Update
Reporting Responsibilities Under Federal Grants for Orphaned Well Plugging and Reclamation
Postcard from the AADE Operator’s Forum
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.