(Reuters) – The fourth quarter saw a halving of dealmaking within the U.S. Oil and Gas industry, with an annual total that fell short of the average before the pandemic, according to Enverus data released on Thursday.

The final three months of 2021 saw oil producers strike deals totaling $9 billion. This is a half-tick from the $18.5 billion recorded in the third quarter. However, the total year reached $66 Billion. That’s a 25 percent increase thanks to an additional quarter of two years.

M&A activity in the industry took a hit in 2020 from the pandemic pushing oil and gas prices to record lows, although commodity prices made a strong rebound last year, sparking a wave of consolidation.

However, this has also led to higher valuations making it more difficult for sellers and buyers to reach an agreement on a price. This is leading to smaller but better deals.

Enverus data shows that upstream deals were signed for 2020 and 2021, as opposed to an average of almost 400 per year prior to COVID.

Enverus stated in a press statement that the slow ending of the “second-year COVID-influenced marketplace” saw total deals fall below $72 billion, a decrease from 2015 to 2019.

Continental Resources’ $3.25 Billion purchase of Delaware assets by Inc (NYSE:) Pioneer Natural Resources (NYSE:) topped the charts for oil M&A in the fourth quarter, followed by Southwestern Energy (NYSE:) Co’s takeover of Blackstone-backed GeoSouthern’s assets in the Haynesville for about $1.85 billion.

Enverus data revealed that Haynesville and the Delaware portion of the Permian Basin were the most active play, representing 80% of all deals in the fourth quarter.

“Overall, the M&A market should be set for an active 2022. Enverus director Andrew Dittmar stated that inventory areas such as Haynesville or the Delaware Basin are still appealing to buyers. “Additional assets should also be available on market,” he said.