The ongoing wave of mergers and acquisitions in the U.S. shale industry is anticipated to stabilize oil prices, as larger producers prioritize shareholder returns over aggressive drilling. This trend follows a notable shift in the industry post-2020 and record earnings in 2022, leading to consolidation instead of mere output maximization. Last week, ConocoPhillips agreed to acquire Marathon Oil in an all-stock deal valued at $22.5 billion, including $5.4 billion in net debt, expected to be accretive to cash flow and earnings. Analysts suggest this merger wave will reduce the volatility of oil production and prices, with further deals likely outside the Permian basin.

Oil & Gas, Energy, Finance,United States