M&A deals in Permian basin exceeds $100 billion in 2023 - WoodMac
12/12/2023 02:55
Dec 12 (Reuters) - The value of U.S. oil and gas mergers
and acquisitions in the Permian basin this year has reached a
record of more than $100 billion after several multi-billion
dollar deals, consultancy Wood Mackenzie said in a news release
on Tuesday.
Those include the blockbuster deals such as Exxon Mobil's
XOM.N $60-billion proposed deal for Pioneer Natural Resources
PXD.N and Chevron's CVX.N $53-billion agreement for Hess
HES.N .
Other deals include Permian Resources' $4.5 billion bid for
Earthstone Energy and Ovintiv's $4.3 billion splurge on three
Permian Basin acquisitions.
Civitas Resources CIVI.N spent a combined $4.7 billion
for two private-equity owned properties in the Permian, Tap Rock
Resources and Hibernia Energy III assets.
The Permian basin is a prime target for producers looking to
increase their inventory. Lying between Texas and New Mexico,
the basin's shale oil output is highly productive with large
undeveloped reserves and robust infrastructure.
Occidental's OXY.N purchase of CrownRock announced on
Monday will create the sixth producer in the lower 48 U.S.
states of 1 million barrels of oil equivalent per day, with
others including Chevron, EOG, ExxonMobil, EQT and
ConocoPhillips, Wood Mackenzie said.
In the Permian specifically, Occidental will become a top
three producer behind the majors, pumping more oil and gas
pro-forma than Pioneer did at the time of its sale announcement,
WoodMac said.
"This transaction cements an absolute banner year in Permian
acquisitions and divestments spend. Coupled with other mega 2023
deals like ExxonMobil and Pioneer, it solidifies Permian scale
and multi-decade longevity as a 'must have' trait for US Majors
and Super-Independents," Robert Clarke, vice president of
upstream research at Wood Mackenzie said.
WoodMac said the total merger and acquisitions spend this
year in the top U.S. shale field is the highest since $65
billion in 2019, led by Occidental Petroleum Corp's $38 billion
acquisition of Permian rival Anadarko.
(Reporting by Rahul Paswan and Brijesh Patel in Bengaluru;
Editing by Christian Schmollinger)
((RahulKumar.Paswan@thomsonreuters.com ; If within U.S. +1 646
223 8780;;))