The “Practice Makes Perfect” Dividend
In most industries, M&A is a gamble. In Oil & Gas, it has become a science. The 2026 report reveals a staggering statistic: Frequent acquirers in this sector generated total shareholder returns (TSR) 130% higher than inactive companies over the last decade.
This isn’t just about buying growth; it’s about muscle memory. The top 20 acquirers now account for 53% of all deal value. The non-obvious insight here is that the industry has bifurcated into “Professional Buyers” and “Amateur Spectators.” The professionals aren’t waiting for investment bankers to bring them a deal; they are maintaining an active “Industry Gameboard” - a living map of 15 to 20 targets - and knocking on doors before the “For Sale” sign ever goes up. If you aren’t constantly in the market, you aren’t just missing deals; you are losing the capability to execute them.
The Three-Move Checkmate
The report highlights a fascinating case study with Phillips 66 that illustrates the difference between a “deal” and a “strategy.” Most companies think one move ahead. Phillips 66 thought three moves ahead:
- Close a high-cost refinery in Los Angeles (removing a liability).
- Buy ownership in refineries in the Midwest and Texas (acquiring efficient capacity).
- Build a pipeline to connect the new assets to the old market.
This is the “Grandmaster” approach. They didn’t just buy a target; they re-engineered their entire logistics chain. The insight for investors? Stop judging a deal on its standalone accretion. Judge it on what subsequent moves it unlocks. The best deal might look expensive today but cheap tomorrow because of what it allows you to build next.
Transformation, Not Just Integration
Finally, the “Synergy” playbook has been rewritten. Traditional integration is about “Stabilize and Cut Costs.” The new model is “Stabilize, Integrate, and Transform”.
Look at Suncor’s takeover of Syncrude operations. They didn’t just merge email systems; they used the chaos of the deal to fundamentally question how they worked—insourcing labor they used to contract out and changing maintenance strategies. They used the deal as a Trojan Horse to fix their own internal inefficiencies. In 2026, a merger isn’t just about getting bigger; it’s the only excuse a CEO has to radically overhaul the engine while the car is still moving.
Read the full report from Bain at - M&A in Energy and Natural Resources: The Rise of the Oil and Gas Serial Acquirer