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Big dollar deals like Conoco-Marathon Oil driving activity

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Average price paid per undeveloped property up 68% this

year

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Exxon's deal for Pioneer kicked off latest wave of mergers

By Gary McWilliams

HOUSTON, July 30 (Reuters) - U.S. oil and gas patch

deals continued to run hot in the second quarter, topping $30

billion with big dollar tie-ups pushing values higher, according

to data released on Tuesday by energy researcher Enverus.

Blockbuster mergers, such as ConocoPhillips' ( COP ) $22.5

billion offer for Marathon Oil ( MRO ), remain a mainstay even

as U.S. lawmakers call on regulators to "pump the brakes" on

merger approvals.

The latest round of deals kicked off last autumn with Exxon

Mobil's ( XOM ) $60 billion offer for Pioneer Natural and has

spread through the U.S. energy industry, moving across Texas and

North Dakota oil and gas producers to energy pipeline operators.

There were 18 oil and gas production tie-ups with disclosed

prices totaling $30.29 billion, up from 25 deals valued at $24.4

billion in the same quarter a year ago, said Andrew Dittmar,

Enverus' head of M&A research.

"Pressure built on companies like ConocoPhillips ( COP ) and Devon

Energy ( DVN ), that has previously stayed out of the market, to keep

pace with peers and grow in scale," said Dittmar.

The value of deals, however, slipped from a record $51

billion in the first quarter, according to Enverus data.

Conoco's proposed acquisition of Marathon Oil ( MRO ) represented

most of last quarter's deal total. Devon Energy ( DVN ) this month has

reinforced the pace with its $5 billion bid for shale oil

producer Grayson Mills.

The average price per undeveloped drilling location in this

year's oil production combinations climbed to $3.2 million, from

an average of $1.9 million in 2023, Enverus data showed.

Oil and gas deals priced at less than $1 billion have been

squeezed by a lack of capital and shifting investment goals by

private-equity investors, according to M&A advisory firm Petrie

Partners.

Among second-quarter deals: SM Energy ( SM ) agreed to buy

XCL Resources for $2.55 billion, Crescent Energy ( CRGY ) bid

$2.1 billion for SilverBow Resources ( SBOW ), and Matador

Resources ( MTDR ) offered $1.9 billion for Ameredev II.

The Federal Trade Commission has not stopped any recent oil

mergers but is reviewing ConocoPhillips ( COP ), Chevron ( CVX ),

Occidental Petroleum ( OXY ), Chesapeake Energy ( CHK ), and

Diamondback Energy ( FANG ) deals.