U.S. oil and gas deals reached a record $51 billion in the first quarter of 2023, continuing the merger spree seen in the top U.S. shale field. Energy companies have been aggressively expanding their drilling inventories, particularly in the Permian Basin, where production costs are relatively low. The largest deal proposed last quarter was Diamondback Energy’s $26 billion acquisition of Endeavor Energy Partners, bringing together two major Permian operators. Other notable deals included Apache Corp’s $4.5 billion purchase of Callon Petroleum and Chesapeake Energy’s $7.4 billion acquisition of Southwestern Energy. However, some mergers, such as Chesapeake’s and those executed by Exxon Mobil and Chevron last year, have been delayed by antitrust reviews due to concerns about market concentration. Despite the high number of deals, analysts expect the pace to slow as strong oil prices make it more advantageous for companies to hold on to their assets.