US, European Companies Strike Deals to Further Consolidate Oil Industry -- At a Glance

Large energy players in the U.S. and Europe are striking deals with smaller companies this year, consolidating the oil industry. The deal frenzy comes at a time when oil companies are eager to spend the large windfall of cash made last year when oil-and-gas prices hit multi-year highs following Russia's invasion of Ukraine. Some of these moves are also seen as a vote of confidence in the long-term resilience of fossil-fuel demand, despite policymakers' growing efforts to promote low-carbon energy.

--Chevron on Monday agreed to acquire medium-sized rival Hess in an all-stock deal valued at $53 billion. Chevron said the acquisition would upgrade and diversify its portfolio, and that Hess would add about 10% to its overall oil-and-gas production of about 3 million barrels a day. In May, Chevron also agreed to buy shale driller PDC Energy, which has sizeable operations in Texas and Colorado, for $6.3 billion.

--Exxon Mobil struck a nearly $60 billion deal earlier this month to buy exploration-and-production company Pioneer Natural Resources, cementing its status as the dominant player in the U.S. fracking industry, now centered in West Texas, where Pioneer has more places to drill than almost all of its rivals. In July, Exxon Mobil also scooped up Dunbury, a Dallas-based pipeline operator and oil producer running an extensive CO2 transport network in the U.S., for $4.9 billion.

--Italy's Eni and Norway's Var Energi agreed to acquire Neptune Energy's global and Norway businesses in June for around $4.9 billion including debt. The Italian oil major said the deal would support its goal to increase the share of gas in its portfolio by the end of the decade.

--BP and Abu Dhabi National Oil Co., also known as ADNOC, have made a nonbinding offer to acquire Israeli gas producer NewMed Energy in March, aiming to form a joint venture focused on gas development in areas of mutual interests, such as the East Mediterranean.

--U.S. pipeline operator Oneok agreed in May to buy smaller rival Magellan Midstream Partners for about $14 billion, forming one of the biggest U.S. companies involved in transporting and storing energy. Oneok has a vast network of storage terminals and natural gas and liquid pipelines, while Magellan owns almost 10,000 miles of pipelines carrying refined products with dozens of interconnected storage facilities in the U.S.

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(END) Dow Jones Newswires

October 23, 2023 10:53 ET (14:53 GMT)

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