05:58 AM EDT, 03/20/2024 (MT Newswires) -- In 2023, crude oil and natural gas exploration and production companies spent US$234 billion on mergers and acquisitions, the most in real 2023 dollars since 2012, the US Energy Information Administration reported Tuesday.

The increased spending marks a return to a previous consolidation trend among US oil companies after transactions declined amid oil market volatility in 2020 and 2022, the EIA noted.

Corporate M&A was 82% of total announced spending, with the rest composed of asset acquisitions, the agency said. Of these corporate M&A deals, the largest by value are Exxon Mobil Corp.'s pending acquisition of Pioneer Natural Resources Co. for US$64.5 billion and Chevron Corp.'s deal to acquire Hess Corp. for US$60 billion.

Recent consolidation activity is expected to result in larger companies that own more producing assets, boosting these companies' share of US production, according to the EIA.

If Chevron successfully acquires Hess, Chevron's share of US production would increase to 6%, based on third-quarter 2023 data. Similarly, Exxon could boost its production to nearly 7% of total US production if it successfully acquires Pioneer Natural Resources, the EIA said.