News Release

US Upstream M&A Opens Strong in 2022

byEnverus

Austin, Texas (April 13, 2022) — Enverus, the leading energy data analytics and SaaS technology company, is releasing its summary of 1Q22 M&A activity. As the M&A market marched into the new year, $14 billion in deals were announced during the first quarter of 2022. The $6 billion transacted in January 2022 was the strongest M&A market launch in five years. However, the last significant transaction occurred in early March before a spike in commodity prices temporarily halted activity.

“All the factors that kept upstream deals resilient in 2021 carried over into the new year,” said Andrew Dittmar, director at Enverus. “That included a need for inventory by public companies, ready private sellers and favorable pricing. However, the volatility in energy prices caused by Russia’s invasion of Ukraine stalled nearly all deals in March.”

Table showing top five U.S. upstream deals of Q1 2022

Overall, deals were most active in the Rockies region (more than 50% of total 1Q22 value) driven particularly by buyer interest in North Dakota’s Williston Basin and Colorado’s DJ Basin. The always consistent Permian Basin captured a bit under 30% of deal value and one big deal in the Marcellus drove the roughly 20% of value allocated to the Eastern region. A lack of deals in the previously active Haynesville and a continued slow pace in the Eagle Ford meant transactions in Ark-La-Tex and the Gulf Coast were sparse.

Private company exits remained a primary theme accounting for four of the five largest deals of the quarter. Chesapeake continued its buildout of core gas-focused inventory in the northeast Marcellus by acquiring private Chief Oil & Gas and associated Tug Hill interests in a $2.6 billion transaction. While that deal was more focused on building inventory runway and Chesapeake was willing to pay for it, other buyers like Earthstone Energy in the Midland Basin and PDC Energy in the DJ Basin sought acquisitions that could be purchased solely for the value of existing production while still adding future drilling locations.

“Buyers have been cautious about raising the offer price in deals to match the rise in commodity prices. Even before the latest bout of volatility, upstream assets were pricing cheaply on most metrics relative to historical averages,” Dittmar said. “The quick surge in commodity prices that accompanied the war in Ukraine has particularly blown out the gap between what buyers are willing to pay and sellers expect to get. And because they are so far apart, we have seen a pause in upstream deals.”

One of the deal types less susceptible to commodity pricing risk is the so-called corporate mergers of equals. In these mergers, two public companies of similar size combine with little to no premium paid to the acquired company. These types of deals, targeted at creating a larger and hopefully more stable platform for investors, were more common in the early innings of the post-COVID market. The combination of Oasis Petroleum and Whiting Petroleum in the Bakken in early March was a return to this type of transaction and the first public-public company merger since August 2021. The two mid-sized producers are likely hopeful that a larger company will give them the scale to better pursue further consolidation and add inventory in the maturing Bakken.

“There should still be plenty of upstream deals to be had,” Dittmar said. “Those can come from further private exits, non-core sales by the big producers like ConocoPhillips and ExxonMobil, or the remaining smaller E&Ps finding merger partners. We just need some stability in commodity pricing and an acquisition or two to benchmark deals to reignite what should be an active market.”

Members of the media can contact Jon Haubert to request a copy of the full report or to schedule an interview with one of Enverus’ expert analysts.

About Enverus
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.

 

Picture of Enverus

Enverus

Energy’s most trusted SaaS platform — creating intelligent connections that uncover insights and opportunities to deliver extraordinary outcomes.

Related News

2025 Mid-Year Minerals Market Outlook What’s moving the market next?
News Release
ByEnverus

Enverus invites journalists and industry professionals to attend its “2025 Mid-Year Minerals Market Outlook” webinar at 1:00 p.m. CT on July 15, 2025.

Bearish oil thesis yet to play out
News Release
ByEnverus

Enverus Intelligence® Research has released its latest Fundamental Edge report.

persona-Operators-with-non-operating-assets-.jpg
News Release
ByEnverus

Enverus is releasing its annual list of the most prolific 100 private oil and gas producers in the U.S. based on gross operated production, well count and rig movements across last year.

GettyImages-1148355005
Analyst Takes Blog Topics
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

In reaction to news of U.S. airstrikes on Iran’s nuclear facilities, Al Salazar, director at Enverus Intelligence® Research (EIR), released this statement explaining the significance on oil prices:

Stranded sparks: Rising costs threaten viability of Texas Energy Fund projects
News Release
ByEnverus

Enverus Intelligence® Research (EIR) has released a report that analyzes how rising capital costs and supply chain delays have affected natural gas-fired power projects under the Texas Energy Fund (TEF).

GettyImages-1178545406-oil&Gas
Analyst Takes Blog Topics
ByAl Salazar, Enverus Intelligence® Research (EIR) Contributor

In response to news that Israel has launched an attack on Iran, Al Salazar, director at Enverus Intelligence® Research (EIR), released this reaction explaining the significance on oil prices.

Europe’s battery boom: 13 times more capacity by 2028 faces grid, regulatory roadblocks
News Release
ByEnverus

Enverus Intelligence® Research has released a market overview of the opportunities and challenges related to developing battery projects in Europe.

Vanishing renewable energy credits: US tax incentives may not be so critical
News Release
ByEnverus

Enverus Intelligence® Research has released a new report evaluating successful renewable energy development amid today’s federal policy uncertainty in the U.S.

Viper Strikes Rare Mineral Merger with $4.1 billion Sitio Buy
Analyst Takes Blog Topics
ByAndrew Dittmar

In response to today's announcement that EOG Resources would acquire Encino Acquisition Partners for $5.6 billion, Andrew Dittmar, principal analyst at Enverus Intelligence® Research provided this commentary explaining the deal's significance.

Find Out How Enverus Can Help Your Business

Subscribe to the Energy Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Get Started

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert