Mergers and acquisitions in the U.S. oil-and-gas industry climbed to $206.6 billion in 2024, more than quadruple the previous year, according to an Ernst & Young study released Tuesday. The tally marks the sector’s busiest year for deal-making since the shale boom, even as crude prices retreated from 2022 highs. The surge was driven by a handful of megadeals, led by Exxon Mobil’s $84.5 billion of property purchases and sizable transactions by ConocoPhillips and Diamondback Energy. EY said companies flush with cash redirected spending toward scale and efficiency, cutting dividend and buyback outlays 25 percent to $29.2 billion. Industry profits fell 10 percent to $74.8 billion, while exploration and development spending slipped 7 percent to $85.5 billion. Chevron underscored the consolidation trend by announcing plans to fold Hess Corp.’s exploration team into its own following last month’s $53 billion takeover—its largest deal to date. Chief Executive Officer Mike Wirth said the combined group aims to “challenge conventional thinking” and revive discoveries after recent dry wells. Hess geologists helped secure a 30 percent stake in Guyana’s Stabroek Block, a field now estimated to hold 11 billion barrels of recoverable resources. Analysts say the push for scale reflects a strategic pivot from rewarding shareholders to shoring up long-term growth and cost competitiveness. With commodity prices soft but balance-sheet cash plentiful, EY expects acquisitive momentum to remain a defining feature of the U.S. oil patch.