Upstream M&A booms in Q2 with $24B in deals

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Jul 25, 2023, 12:41 ET

Permian asset ownership shifts as public E&Ps look to shore up inventory

CALGARY, AB, July 25, 2023 /PRNewswire/ -- Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, is releasing its summary of 2Q23 upstream merger and acquisition (M&A) activity. In Q2, U.S. upstream M&A boomed with $24 billion transacted in 20 deals with the Permian returning to its usual position as the center of M&A activity.

"The second quarter saw a thunderous return to Permian M&A after a relatively quiet start to the year," said Andrew Dittmar, director at Enverus. "The need for public buyers to secure quality drilling inventory has been brewing, and the pressure to make a deal has been mounting as the remaining opportunities are narrowed."

As private opportunities further dwindle more companies are likely to consider corporate mergers with other public companies. Potential combinations include both mergers of equals between the smaller companies or sales to a larger peer. Gas deals, which were notably absent in the first half of 2023, could also potentially find traction as the commodity hits a bottom and buyers look to play a rebound driven by growing U.S. LNG exports in coming years.

View Enverus' full announcement including extended commentary and Top Five Deals of Q2.

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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.

SOURCE Enverus