Purchasing reserves and commodity market timing as takeover motives in the oil and gas industry

► We demonstrate that energy reserves and prices influence takeover activity, value, and performance. ► We theorize that managers are motivated in M&A transactions to buy energy reserves and to time the energy market prices. ► Acquirers are motivated to purchase reserves, while targets are motivated to sell based on market timing. ► We find empirical evidence that acquirers generate negative takeover performance from lower risk. ► Our results suggest that targets are motivated to time the market for energy prices when they offer themselves for takeover.