Two mega-deals mark major step in US oil and gas consolidation [Gas in Transition]

Two mega-deals mark major step in US oil and gas consolidation [Gas in Transition]

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Natural Gas News
Two mega-deals mark major step in US oil and gas consolidation [Gas in Transition]

Summary

ExxonMobil is acquiring Pioneer Natural Resources and Chevron is buying Hess in two US mega-deals that shake up the US oil and gas industry. [Gas in Transition, Volume 3, Issue 10] by: Anna Kachkova

Two oil and gas mega-deals announced this month will reshape the US oil and gas industry. Over the course of two weeks in October, ExxonMobil announced that it was acquiring Pioneer Natural Resources while Chevron said it had agreed to buy Hess. ExxonMobil’s deal is valued at $59.5bn, while Chevron’s is worth $53bn, with both deals consisting entirely of stock. In ExxonMobil’s case, it is the largest transaction since the supermajor was formed via the merger of Exxon and Mobil in 1999. In Chevron’s case, it is the company’s largest ever. This comes after Pioneer’s CEO, Scott Sheffield, predicted in his company’s second-quarter earnings call for 2023 that shale producers would be running out of inventory over the coming years except for the largest producers, of which Pioneer is one. This, Sheffield said in the August earnings call, was expected to lead t...