The United States witnessed a record-shattering $51 billion in oil and gas acquisitions during the first quarter of 2023, predominantly focused on the prolific Permian Basin in West Texas and New Mexico. Energy companies are flocking to the Permian due to its exceptional drilling prospects and relatively low break-even costs, leading to significant investments. Top-tier deals included Diamondback Energy’s $26 billion bid for Endeavor Energy Partners and Apache Corp’s $4.5 billion acquisition of rival Callon Petroleum. Despite regulatory hurdles, including antitrust reviews that have delayed some major deals, the number of transactions surged to 27 in Q1, a 35% increase from the previous year. The strong oil price environment is enabling companies to retain non-core drilling assets, showcasing a shift towards strategic asset retention among E&P companies. The oil and gas sector experienced a banner year for mergers and acquisitions in 2023, with Exxon’s $60 billion purchase of Pioneer and Chevron’s planned $53 billion acquisition of Hess. However, Chevron’s deal has encountered obstacles, as Exxon has asserted right-of-first-refusal challenges over the transaction.