How a spree of oil and gas mergers are setting the stage for 2024
By Amanda Drane
click here to read the original article at The Houston Chronicle
*this article was not written by Roseland Oil & Gas
Last year was big for Texas oil companies as they jockeyed for access to petroleum-rich plots of the Permian Basin and branched into new territories.
Recent megadeals struck by Chevron and Exxon put pressure on others in the oil industry to catch the consolidation wave, potentially kicking off a new round of mergers and acquisitions that could have a profound impact on Houston for years to come. Additionally, milestone acquisitions made by Exxon and Occidental Petroleum in the carbon capture space also set the stage for Houston to be ground zero for the growing industry.
Exxon to buy Pioneer for $59.5 billion
Exxon said in October that it would buy Irving-based Pioneer Natural Resources for $59.5 billion in the oil giant’s largest deal since it merged with Mobil more than two decades ago. Expected to be finalized in 2024, the deal would make Spring-based Exxon the largest operator in the Permian Basin of Texas and New Mexico and bring the company’s daily production to almost 4.5 million barrels of oil equivalent a day — 50% more than the next largest supermajor.
Chevron to buy Hess for $53 billion
Chevron said in October that it would buy Hess for $53 billion in a deal expected to close in 2024. The acquisition would put the supermajor front and center offshore Guyana alongside Exxon. The South American oil region has been among the world’s most successful areas since its discovery in 2015, with expertise associated with Guyana largely based in Houston.
Oxy to buy CrownRock for $12 billion
Occidental Petroleum said last month that it would acquire Midland-based CrownRock, one of the largest remaining private oil and gas producers in the Permian Basin. The $12 billion deal between the Houston oil giant and the producer controlled by West Texas billionaire Tim Dunn continues a consolidation trend rippling across Texas as big publicly held oil companies seek to expand their inventories through acquisition.
Chevron bought PDC for $6.3 billion
Chevron’s announcement in May that it would acquire Denver-based PDC Energy for $6.3 billion helped kick off the year’s buying frenzy. The deal doubled Chevron’s drilling portfolio in the DJ Basin of northeastern Colorado and southeastern Wyoming to more than 600,000 acres and nearly tripled production in the area to 400,000 barrels a day, Bloomberg reported.
Exxon bought Denbury for $4.9 billion
Exxon’s purchase of Plano-based Denbury marked a milestone in the emerging carbon capture industry: It was the first big public deal in which the bulk of the value comprised carbon capture and storage assets. The $4.9 billion deal, which closed in the fourth quarter, hastens the supermajor’s plans to develop a carbon capture hub along the Gulf Coast and positions it as a global leader in the emerging carbon capture industry, analysts said.
Permian Resources bought Earthstone for $4.5 billion
Midland-based Permian Resources said in August that it would acquire Woodlands-based rival Earthstone Energy in a deal valued at $4.5 billion, including debt, doubling the size of its properties in the Permian to more than 400,000 acres, with projected production of approximately 300,000 barrels of oil equivalent per day, the company said. The deal closed in November.
Ovintiv bought 3 Permian companies for $4.3 billion
Denver-based Ovintiv spent $4.3 billion to buy a group of three companies operating in the Permian Basin: Black Swan Oil & Gas, PetroLegacy Energy and Piedra Resources. They were portfolio companies purchased from EnCap Investments. Access to high-quality inventory was becoming a problem for Ovintiv, but the deal addressed that concern, analysts told the Midland Reporter-Telegram.
Civitas entered the Permian with $6.8 billion buying spree
Civitas Resources entered the Permian Basin with a splash of 2023 acquisitions totaling nearly $7 billion. The Denver company said in October that it would acquire Vencer Energy’s assets in the Midland Basin from Vitol for $2.1 billion in a deal expected to close in January. That deal would bring the company’s spending in the Permian to $6.8 billion after its $4.7 billion deal earlier in the year to buy assets operated by Tap Rock Resources and Hibernia Energy III from NGP Energy Capital.
Oxy buys Carbon Engineering for $1.1 billion
Oxy said in August that it would acquire the Canadian direct air capture company Carbon Engineering for $1.1 billion. The companies in April unveiled the first commercial-scale test of Carbon Engineering’s technology, which uses potassium hydroxide to draw carbon dioxide into its processing units. That facility, under construction in West Texas, is scheduled to launch in 2025.
By Amanda Drane
click here to read the original article at The Houston Chronicle
*this article was not written by Roseland Oil & Gas