Permian deals push oil and gas mergers and acquisitions to record start in 2024, but slowdown ahead

Mella McEwen | Source: San Antonio Express News | Posted 05/06/2024

Permian Basin deals in the first quarter helped drive a record start to 2024 upstream merger and acquisition activity, led by Diamondback Energy’s $26 billion acquisition of Endeavor Resources — but the big wave of Permian deals may be done.

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Permian Basin experienced a record-breaking start to 2024 in upstream merger and acquisition (M&A) activity, driven by Diamondback Energy's $26 billion acquisition of Endeavor Resources among other notable deals. However, a summary by Enverus Intelligence Research suggests that the peak of Permian deals may have passed, following $51 billion in activity in the first quarter of 2024 on the heels of a massive $192 billion in deals from the previous year.

While M&A activity in the Permian Basin is expected to continue, industry analysts anticipate a shift towards exploring opportunities in other regions such as South Texas Eagle Ford Shale, East Texas-Louisiana Haynesville Shale, and Oklahoma's SCOOP/STACK due to increased consolidation in the Permian. Companies are likely to focus on finding new resources for development beyond core areas like Spraberry Trend, Wolfcamp Shale, and Bone Spring Formation, prompting acreage swaps and bolt-on acquisitions in the quest for long lateral drilling opportunities.

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Permian deals push oil and gas mergers and acquisitions to record start in 2024, but slowdown ahead

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