Exxon deal puts spotlight on M&A targets but heightened scrutiny a dampener

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Exxon deal puts spotlight on M&A targets but heightened scrutiny a dampener
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Matt Dusk sings Sinatra in Halifax/PEI/Moncton | SaltWire - Exxon Mobil's mega $60 billion deal for shale rival Pioneer Natural Resources could be a catalyst that will drive further consolidation in the U.S. oil and gas industry, analysts said, as they zeroed in on a handful of likely targets.

The Permian Basin, the top U.S. oilfield known for its low cost of extraction, is seeing a consolidation with more than $26 billion worth of deals this year before the Exxon announcement, as per Rystad Energy data. That is more than double the entire value of deals signed in 2022 for the region. "Chevron seems the most likely to respond with a transaction of its own," said Andrew Dittmar, a director at consultancy Enverus.

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