Bloomberg Law
Jan. 31, 2023, 8:17 PM

Record Oil Profits Reignite US-European Acquisition Chatter

Kevin Crowley
Kevin Crowley
Bloomberg News

Exxon Mobil Corp. and Chevron Corp. are piling up such hefty profits that a new era of oil megamergers may be on the horizon for the first time in two decades.

The US supermajors are enjoying a market-valuation premium over European competitors Shell Plc, BP Plc and TotalEnergies SE at a time when windfall profits are providing ample currency to execute big purchases, Citigroup Inc. said in a research report Tuesday. UK-based fund manager M&G Plc also speculated recently that the valuation gap may spur dealmaking.

“The huge financial accretion through trans-Atlantic M&A must, in our view, be a ...