Closer Look at M&A Potential in Energy and the Case for Continued Consolidation

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Closer Look at M&A Potential in Energy and the Case for Continued Consolidation

Equity Research

29 June 2026 | 4:13PM EDT

AMERICAS ENERGY

Closer Look at M&A Potential in Energy and the Case for Continued

Consolidation

In this note, we examine the historical context of and outlook for continued M&A in Neil Mehta

+1(212)357-4042 | neil.mehta@gs.com

the oil and gas sector, particularly among US Majors, E&Ps, Refining, Midstream, and Goldman Sachs & Co. LLC

Energy Services. We view further consolidation as a positive step for the industry, James Yaro

helping to drive strategic asset alignment, improve cost structures, and build +1(212)902-1913james.e.yaro@gs.com|

stronger through-cycle earnings and free cash flow generation. While the sector has Goldman Sachs & Co. LLC

John Mackayseen meaningful, large-scale consolidation particularly in the past few years, we see +1(212)357-5379 |

sufficient runway for incremental consolidation. We see E&Ps as a prime area for john.mackay@gs.comGoldman Sachs & Co. LLC

long-term consolidation and highlight our Buy ratings on FANG, OVV, COP, PR, and Ati Modak

DVN. We note U.S. Majors could be interested in potential acquisitions to extend +1(212)902-9365 | ati.modak@gs.com Goldman Sachs & Co. LLC

reserve life, given premium valuations. In Refining and Midstream, we expect more of

Alexa Petrick

a focus on bolt-on transactions relative to transformative M&A given regulatory +1(917)343-9472 |

alexa.petrick@gs.com

concerns around anti-trust competition. That said, we apply an M&A rank of 2 to Goldman Sachs & Co. LLC

KNTK and GLNG among our Buy-rated Midstream names. Lastly, we find M&A in Jackie Koletas

Energy Services increasingly focused on private power as the market continues to +1(917)343-6953jackie.koletas@gs.com|