Energy M&A may have ground to a halt in early 2019 thanks to plunging oil prices.

In fact, U.S. oil and gas M&A fell 93% in the first quarter of 2019 to just $1.6 billion. But that’s what

happens when oil prices plummet more than 40%.  However, as oil prices begin to recover on the latest Trump and Iran news, we’re seeing a return of respectable M&A in the sector.

For example, just weeks ago, Chevon (CVX) announced it would buy Anadarko Petroleum (APC) in a cash and stock deal valued at $33 billion.  That valued APC at $65 a share.

But it appears there’s a bidding war.

This morning, Occidental Petroleum (OXY) bid $76 a share for Anadarko Petroleum, which includes a half cash offer of $38 a share, and half stock offer of 0.6094 OXY shares.  “Anadarko has great assets,” Occidental CEO Vicki Hollub said on CNBC “We are the right acquirer because we can get the most out of the shale.”

As a result of the offer, shares of APC are up $7.41, or 11.4% in pre-market trading.

While a potential deal could make OXY the largest producer in the Permian Basin, some analysts don’t believe Occidental’s offer is great news.  For example, according to analysts at Raymond James, as quoted by Reuters, ““This is not a smart move on part of Occidental given the difference of size between the two companies. “Chevron is much bigger and has the resources to combine the two companies and has significant deep-water experience.”