2024 races to a record start with $51B in upstream M&A

Permian yet again drives deal activity, but unlikely to maintain fast pace

CALGARY, AB, April 23, 2024 /PRNewswire/ -- Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted generative AI and energy-dedicated SaaS company, is releasing its summary of 1Q24 upstream M&A activity. Following last year's blockbuster $192 billion in U.S. upstream consolidation, 1Q24 would be on track to surpass that record with $51 billion in announced deals. However, EIR is pumping the brakes on another record-setting year as deal activity has slowed significantly in March and Q2 appears to have already lost momentum.

"Deals at the start of 2024 were driven by the same factors that led to last year's marathon of mergers, foremost among them a desire to lock up high-quality inventory when it is available," said Andrew Dittmar, principal analyst at EIR. "Most of that inventory is going to be found in the Permian, so it is unsurprising the prolific basin was yet again the primary driver for M&A within oil and gas."

Headlining consolidation in Q1 was privately held Endeavor Energy Resources' sale to publicly held Diamondback Energy. The $26 billion buyout was the largest sale of a private company Enverus has tracked. "Endeavor was a unique opportunity to acquire a legacy family-owned E&P with leases in the core of the Midland Basin acquired decades before Diamondback, or many of the other familiar shale names, were even in business," said Dittmar.

Companies are likely to be looking beyond the Permian for future M&A opportunities though because of both higher fragmentation in other plays and lower prices. The Eagle Ford and SCOOP | STACK are two plays with proportionally higher ownership by private equity-backed E&Ps likely to welcome an offer to be acquired by a public company. Both plays are also interesting from a commodity diversification perspective, with a mix of oil and gas production and an opportunity to capitalize on an eventual gas price recovery.

Members of the media should use our new Request Media Interview option on the Enverus Newsroom page to schedule an interview with one of our expert analysts.

About Enverus Intelligence Research

Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Learn more at Enverus.com.

View all press releases at Enverus.com/newsroom

SOURCE Enverus