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从股东回报转向扩张!美国去年油气并购活动同比增长57%

From shareholder returns to expansion! Oil & gas M&A activity in the USA increased by 57% YoY last year.

wallstreetcn ·  Aug 20 02:17

US energy companies that made a lot of profit during high oil prices accelerated their investment in mergers and acquisitions, exploration, and development last year. However, dividend and share buyback expenditures from oil and gas companies were reduced by half last year.

According to a report released by Ernst & Young on Tuesday, the total amount of mergers and acquisitions in the US energy industry last year reached $49.2 billion, a 57% increase from $31.4 billion in 2022.

This growth was mainly due to energy companies, especially oil and gas giants, increasing their development investment spending due to the surge in profits in recent years resulting in higher cash flows.

Ernst & Young predicts that with the push for more large transactions, merger and acquisition activity in the energy industry is expected to continue for the next two years.

Energy companies not only performed well in the M&A market, they also increased their investment in exploration and development. Last year, related expenses increased by 28% to $93.1 billion.

This marks a shift in the global energy industry's strategy from the past few years of shareholder returns back to expansion, with many companies beginning to focus more on expanding their core business and improving efficiency in order to attract investors.

Last year, dividend and share buyback expenditures in the oil and gas industry were cut in half from a record $57.7 billion in 2022 to $28.9 billion.

In addition to the surge in profits, the acceleration of industry consolidation has also led to a significant increase in M&A activity. In 2023, total spending by US energy companies reached $142.3 billion, up 36% from 2022.

Bruce On, partner in Ernst & Young's strategic and energy transaction group, said in a media interview, "In 2023, we (energy companies) are beginning to focus on consolidating our operator positions," and pointed out that the strategy will shift towards investing in core business.

He said that companies with ample funds focus on improving operational efficiency through scale and leveraging existing businesses.

Despite the drop in oil prices, US energy companies' profits fell 55% to $83.9 billion in 2023, but this did not stop industry giants from expanding. For example, Chevron was the largest real estate buyer last year, with a total real estate acquisition cost of $10.6 billion, and in May of this year, ExxonMobil acquired Pioneer Natural Resources for $60 billion.

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