Enverus Reports Decline in Upstream Oil & Gas M&A Activity in Q4 2024
Deal News | Jan 29, 2025 | EIN
In 2024, the upstream oil and gas industry experienced significant M&A activity, totaling $105 billion, according to Enverus, a prominent energy data analytics firm. However, deal volume diminished in the year's fourth quarter as potential buyers encountered fewer acquisition opportunities. The largest deal of the final quarter occurred in November when Coterra Energy acquired Avant Natural Resources and Franklin Mountain Energy for $3.95 billion in the Delaware Basin. Furthermore, gas-focused M&A surged dramatically, valued over $20 billion for the first time since 2016. Gas-fired asset demands are escalating due to rising liquefied natural gas (LNG) exports. Diversified Energy announced its acquisition of Maverick Natural Resources, enhancing its U.S. presence beyond its original Appalachian focus. Despite the dip in activity compared to 2023's $192 billion, the market's growing interest in natural gas assets suggests continued industry consolidation, albeit at a slower pace.
Sectors
- Energy (Oil & Gas)
- Investment Banking
Geography
- United States – The article discusses M&A activities primarily within the U.S., particularly focusing on regions like the Permian Basin and Appalachia.
- Louisiana – Mentioned as strategically relevant due to its LNG export facilities, affecting gas M&A activity.
Industry
- Energy (Oil & Gas) – The energy sector involving upstream oil and gas companies is the primary focus of the article, detailing merger and acquisition activities.
- Investment Banking – The discussion around M&A activities highlights the role of investment banking in facilitating deals within the oil and gas sector.
Financials
- 105 billion – Total deal value of upstream oil and gas M&A in 2024.
- 3.95 billion – Combined acquisition cost for Avant Natural Resources and Franklin Mountain Energy by Coterra Energy.
- 20 billion – Value of gas-focused M&A activity in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Enverus | Data and Analysis Provider | Company | An energy data and analytics firm reporting on M&A activities. |
| Enverus Intelligence Research (EIR) | Research Subsidiary | Company | Subsidiary of Enverus providing detailed analysis on M&A activity. |
| Andrew Dittmar | Principal Analyst | Person | Principal analyst at Enverus Intelligence Research providing insights on M&A trends. |
| Coterra Energy | Acquirer | Company | Acquired Avant Natural Resources and Franklin Mountain Energy in 2024. |
| Avant Natural Resources | Target | Company | Oil and gas company acquired by Coterra Energy. |
| Franklin Mountain Energy | Target | Company | Oil and gas company acquired by Coterra Energy. |
| Diversified Energy | Acquirer | Company | Acquired Maverick Natural Resources to expand its operations. |
| Maverick Natural Resources | Target | Company | Portfolio company of EIG acquired by Diversified Energy. |
| EIG | Seller | Company | Institutional investor and portfolio manager of Maverick Natural Resources. |
| Rusty Hutson | CEO | Person | CEO of Diversified Energy, commenting on its acquisition strategy. |