After a hot start to the year, U.S. upstream mergers and acquisitions slid into a slump in the third quarter, with deal value dropping to $9.7 billion, marking the third straight quarterly decline. That’s what Enverus Intelligence Research (EIR), a subsidiary of Enverus, said in a statement sent to Rigzone recently, adding that “persistently low crude prices have kept many buyers on the bench, particularly for oil-weighted private equity-backed oil and gas exits that fueled much of the activity in the recent past”. A table included in the statement highlighted that the top five U.S. upstream deals of the third quarter comprised a deal between Crescent Energy and Vital Energy for $3.049 billion, a deal between Stone Ridge Holdings and ConocoPhillips for $1.3 billion, a deal between Mach Natural Resources and IKAV for $787 million, a deal between California Resources and Berry Corp for $717 million, and a deal between Diversified Energy and Canvas Energy for $550 million. Andrew Dittmar, principal analyst at EIR, noted in the statement that “crude prices in the mid-$60s or worse have made it tough for sellers” and said “most remaining shale M&A opportunities need stronger pricing to justify public companies paying for the undeveloped locations”. Only about 1,800 shale locations held by private equity can deliver a 10 percent return at $50 per barrel West Texas Intermediate, according to Dittmar, who added that 6,700 require higher prices to hit that benchmark. “Many firms are holding off on exits, anticipating a more favorable market in 2027 or later,” he noted. EIR went on to highlight in the statement that the quarter “wasn’t a complete shutout”. “SMID-cap corporate combinations and gas-weighted deals provided some action,” EIR said. “Notable transactions include Crescent Energy’s (CRGY) acquisition of Vital Energy (VTLE) for more than $3 billion in stock and

The world’s biggest oil companies are expected to press ahead with plans to accelerate production growth when they report earnings this week, despite weak crude prices and higher supplies from OPEC and its allies.  Exxon Mobil Corp., Chevron Corp., Shell Plc, BP Plc and TotalEnergies SE will likely grow output 3.9% this year and 4.7% in 2026, according to analysts’ estimates compiled by Bloomberg. The increases — which include new projects as well as acquisitions — appear designed to capitalize on an expected oil-price upturn in the latter half of next year.  But they could add to the supply glut in the short term. “They’re taking the long view that oil demand is going to be a lot more resilient post-2030,” Noah Barrett, a research analyst at Janus Henderson, which manages about $457 billion. “If they’re not making the investments today, then their portfolios will be really disadvantaged when prices move higher.” After years of outsized profits as oil demand roared back following the pandemic, the world’s largest energy companies are feeling the pinch of crude prices that have dropped about 14% this year near to a four-year low. In response, they’re cutting jobs, reducing low-carbon investments and trimming share buybacks to channel funds toward the most valuable part of their business: oil and gas production. “All the supply coming to the market is shrinking OPEC’s spare capacity — so there’s a light at end of the tunnel, Betty Jiang, an analyst at Barclays Plc. “Whether that’s second half of 2026 or 2027, the balance is going to tighten. It’s just a matter of when.” Recent US sanctions on key Russian giants Rosneft PJSC and Lukoil PJSC provided respite from oil’s fall this year, with Brent crude rising 7.5% last week to more than $65 a barrel. But the oil market is

Japan’s top utility gas provider Tokyo Gas Co. plans to boost its dividend by the fiscal year that ends March 2029 as part of a wider strategy to deliver 200 billion yen ($1.3 billion) in shareholder returns.  The company on Wednesday announced a new midterm management plan spanning fiscal years 2026 and 2028, with the goal for dividends to reach 140 yen ($0.92) per share by the end of the period. That compares with its 100 yen dividend for the current fiscal year. Tokyo Gas shares briefly jumped after the announcement, rising as much as 7%, before reversing those gains gains to trade 0.8% lower at 2:30 p.m. in Tokyo. The company also said it plans to invest as much as 1.3 trillion yen by the end of fiscal year 2028, including 350 billion yen overseas. The move comes as Tokyo Gas is under pressure to improve capital efficiency, after activist Elliott Investment Management disclosed last year that it acquired a 5% stake in the firm. Bloomberg reported in August that Tokyo Gas decided to sell a commercial building in Ginza as shareholders push the company to unload assets that aren’t essential for its core business. In total, Tokyo Gas said it plans 200 billion yen of total shareholder returns over the three-year period. Tokyo Gas also announced earnings for the second quarter, and boosted its fiscal year guidance. The company increased its annual operating income forecast by 4.4% to 166 billion yen, and dividend to 100 yen a share versus 80 yen in prior guidance. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

In an oil and gas report sent to Rigzone by the Macquarie team late Monday, Macquarie strategists, including Walt Chancellor, revealed that they are forecasting that U.S. crude inventories will be down by 2.4 million barrels for the week ending October 24. “This follows a 1.0 million barrel draw in the prior week, with the crude balance realizing modestly looser than our expectations,” the strategists said in the report. “For this week’s balance, from refineries, we model a minimal reduction in crude runs. Among net imports, we model a large reduction, with exports higher (+0.7 million barrels per day) and imports lower (-0.2 million barrels per day) on a nominal basis,” they added. “Likewise, timing of cargoes remains a source of potential volatility in this week’s crude balance. From implied domestic supply (prod.+adj.+transfers), we look for a bounce (+0.6 million barrels per day) on a nominal basis this week,” they continued. The strategists went on to state in the report that they “anticipate a smaller increase (+0.5 million barrels) in SPR [Strategic Petroleum Reserve] stocks this week”. Also in the report, the strategists noted that, “among products” they “look for draws in gasoline (-4.2 million barrels) and distillate (-1.3 million barrels), with jet stocks also slightly lower (-0.2 million barrels)”. “We model implied demand for these three products at 14.6 million barrels per day for the week ending October 24,” the strategists added in the report. In its latest weekly petroleum status report at the time of writing, which was released on October 22 and included data for the week ending October 17, the U.S. Energy Information Administration (EIA) highlighted that U.S. commercial crude oil inventories, excluding those in the SPR, decreased by one million barrels from the week ending October 10 to the week ending October 17. In that

Oil declined as mounting signs of oversupply quelled a bumper rally triggered by US sanctions on key Russian producers last week. West Texas Intermediate fell 1.9% to again settle close to $60 a barrel, the steepest daily drop in more than two weeks. Investors are better positioned to renew bets now that a looming surplus will push prices down after a massive liquidation of speculative wagers. The amount of oil being shipped across the world’s oceans hit a record high, indicating that excess supplies continue to rise. In addition, OPEC+ may agree to add more production at a meeting this weekend. Last week, US President Donald Trump’s administration imposed sanctions on Russia’s two biggest oil producers — Lukoil and state-controlled Rosneft PJSC — to pressure the Kremlin to end the war in Ukraine. The move spurred the biggest unwinding of crude futures positions on record, with bearish wagers held by hedge funds at an all-time high before the sanctions were announced. The ensuing price spike left cleaner positioning for those looking to bet on a drop. Price swings are also set to be exacerbated by the expiry of tens of thousands of Brent options contracts still held near $65 a barrel. The impact of the sanctions is still unclear, with traders closely following actions taken by Chinese and Indian energy companies, top buyers of Russian crude. “The market is now questioning the actual effectiveness of the sanctions,” said Ole Hvalbye, an analyst at SEB AB. “While a full blacklisting sounds dramatic, the mechanisms for enforcement remain unclear, and so far, there are no signs of disrupted Russian flows.” One Indian refiner plans to seek non-Russian barrels, while others are considering whether they can continue to take some discounted Russian oil cargoes by leaning on small suppliers, instead of Lukoil and

Eni SpA and Egypt’s Bioenergy Association for Sustainable Development, affiliated with the Environment Ministry, signed Monday an agreement for a feasibility study on biogas production in the North African country using animal and agricultural waste. “The joint study will assess the feasibility of building a biodigestion plant capable of treating agricultural and animal waste, particularly from livestock farming”, Italy’s state-controlled energy major Eni said in a press release. “The biogas produced by biodigestion can generate renewable electricity and heat, while also producing higher-value organic fertilizers for use in agriculture, further contributing to the circular economy. The initiative would also reduce greenhouse gas emissions from agricultural waste and byproducts, while generating high-quality carbon credits.  “The agreement is in line with the Ministry of Environment’s objective to promote the dissemination of biogas technology across Egyptian governorates and to develop innovative and sustainable energy solutions that contribute to emission reduction and sustainable development. “It also fits in Eni’s long-term strategy to achieve carbon neutrality by 2050 through a multi-faceted approach that includes developing integrated solutions to reduce emissions and enhance resource efficiency”. Elsewhere in Africa Eni earlier this year inaugurated its first vegetable oil extraction plant in the Republic of the Congo, unlocking new feedstock capacity for its biorefineries. The facility in Loudima, in the southern part of the Central African country, can produce up to 30,000 million metric tons per annum (MMtpa) of vegetable oil. The plant will use crops grown on “degraded and underutilized land or through intercropping systems, as part of an innovative regenerative agriculture project developed in collaboration with local stakeholders”, Eni said in a statement June 28. On May 28 Eni said it had signed an agreement with Cote d’Ivoire’s Agriculture Ministry to explore the potential of cultivating biofuel crops in the West African country. The memorandum of understanding “aims to enhance the rubber