Allen Pusey & Christi Trammell

The size of a deal may not always be an indicator of its success, but 2023 in Texas will certainly go down in history as the year of some massive billion-dollar transactions.

Despite the fact that the global M&A market saw a 17 percent decline in value and 6 percent decline in volume, Texas had the distinction of leading the world with the two largest megadeals: ExxonMobil’s $64.5 billion acquisition of Pioneer Natural Resources and Chevron’s $60 billion purchase of Hess Corp. Even ONEOK’s $18 billion acquisition of Magellan Midstream Partners made it to the top dozen deals worldwide, as Texas demonstrated its energy prowess across the globe.

H1 wasn’t a kind environment for capital markets transactions. Saddled with lingering inflation, fed rate hikes, modest market volatility and the occasional bank failure, dealmakers relied on cash, credit and creativity for acquisitions. But with much of that flickering into the rear-view mirror, the stage may be set for a CapM comeback. The Lawbook has details.

The Texas deal numbers are in for the first half of 2023, and according to The Texas Lawbook’s exclusive Corporate Deal Tracker they aren’t especially pretty. But beneath the surface lies a sense among Texas dealmakers that the money is still there, that investors are more disciplined and that deals with legs are simply more complicated and creative and, above all, still part of a vibrant economic pipeline.