Energy Mergers in 2024: Top Deals and 2025 Outlook

The energy sector witnessed dynamic M&A activity in 2024, with notable deals including Diamondback Energy's $26 billion merger with Endeavor Energy, ConocoPhillips' $22.5 billion acquisition of Marathon Oil, EQT's $14 billion acquisition of Equitrans Midstream, Chesapeake Energy's $7.4 billion merger with Southwestern Energy, and Sunoco's $7.3 billion acquisition of NuStar Energy. The energy market is expected to continue transforming in 2025, driven by geopolitical uncertainties, regulatory shifts, and technological innovations.

The energy sector experienced a surge of mergers and acquisitions (M&A) activity in 2024, driven by geopolitical shifts, regulatory changes, and technological innovations [1]. Notable deals included Diamondback Energy's $26 billion merger with Endeavor Energy, ConocoPhillips' $22.5 billion acquisition of Marathon Oil, and EQT's $14 billion acquisition of Equitrans Midstream [2].

Industrial reconfiguration amid geopolitical tensions and energy transition is expected to continue fueling M&A activity in the energy sector during 2025 [1]. Companies with strong balance sheets are best positioned to capitalize on these opportunities. In the oil and gas sector, mega deals are expected to persist, as companies diversify their asset portfolios and seek synergies [1].

The mining and metals sector is also experiencing consolidation, driven by the need to secure supply of critical minerals [1]. In the chemicals sector, energy price volatility and sustainability goals are dampening deal activity [1]. However, the focus on sustainability is expected to lead to an increase in M&A activity in the second half of 2025 [1].

The US is becoming an attractive destination for M&A activity due to economic incentives and advanced infrastructure [1]. Companies in the energy sector, as well as those in other sectors with energy exposure, are engaging in 'friendshoring' to secure vital feedstocks [1].

Regulatory compliance, portfolio optimization, and strategic consolidation are key drivers of M&A activity across the resources sector [1]. Sustainability remains a critical factor in M&A decisions, with regulatory frameworks influencing investments [1].

Sources:
[1] PwC. (2024). Energy, Utilities & Resources Deals Insights. Retrieved from https://www.pwc.com/gx/en/services/deals/trends/energy-utilities-resources.html
[2] S&P Global Market Intelligence. (2024). Diamondback Energy to Acquire Endeavor Energy in $26B Deal. Retrieved from https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/diamondback-energy-to-acquire-endeavor-energy-in-26b-deal-89958264