The surge in energy industry mergers and acquisitions — marked by a series of megadeals among oil producers last year — is set to ramp up further in 2024 as interest rates decline, Enbridge Inc. Chief Executive Officer Greg Ebel said.
“As interest rates start to peak and perhaps come down — who knows exactly when that’s going to be — I actually think things may ramp up at that point,” Ebel said on Bloomberg Television. “After a couple years of tightening you see a couple years of easing, and people will be looking for those growth opportunities.”
The energy industry has seen a wave of consolidation in recent months, including the Exxon Mobil Corp.’s $60 billion purchase of Pioneer Natural Resources Co. and Chevron Corp.’s $53 billion takeover of Hess Corp.
Enbridge was itself active as well, with a $9.4 billion purchase of three utilities from Dominion Energy Inc. to create North America’s largest natural gas provider.
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