AUSTIN, Oct. 12, 2021 /PRNewswire/ -- Enverus, the leading energy data analytics and SaaS technology company, is releasing its summary of 3Q21 U.S. upstream M&A activity. While M&A slid 44% from last quarter's record-setting deal value, the $18.5 billion transacted still topped the five-year quarterly average for M&A value of about $16 billion (excluding Occidental/Anadarko).
"We have seen a red-hot market for upstream M&A since the industry recovered its footing from the initial shock of COVID-19," said Andrew Dittmar, director at Enverus. "It was inevitable that the hungriest buyers and sellers would find their deals and activity would revert back toward the average. We seem to be hitting that inflection point."
Capping the quarter was ConocoPhillips' late September move to solidify its position as a leading Permian producer by acquiring Shell's position in the Delaware Basin for $9.5 billion, a deal that moved Conoco into second place for total Permian production. While Shell's sale was the most prominent example, there was a broader uptick in asset deals collectively.
Corporate consolidation didn't entirely leave the market though. Vine Energy ended its short-lived run as a standalone public company when it agreed to be acquired by Chesapeake Energy for $2.2 billion in the largest corporate deal of Q3.
"There are still opportunities for public company consolidation as well as potential private sellers looking to capitalize on price levels for both gas and oil not seen in years," concluded Dittmar. "But the sense of urgency seems to have left the deal market. Through the end of the year, we are likely to see mostly smaller sized asset deals as companies trim their portfolios with the chance of an occasional larger public company merger or private E&P sale."
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus' innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Learn more at Enverus.com.
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