Upstream M&A activity recorded $17 billion in deal value during the first quarter of 2025, marking the second-best start to a year since 2018, according to a new report from Enverus Intelligence Research (EIR). However, the research subsidiary of Enverus cautions that market conditions are deteriorating rapidly.
The strong quarterly performance was primarily driven by Diamondback Energy’s acquisition of private equity-sponsored Double Eagle IV, which set a record price for Permian Basin assets. According to Andrew Dittmar, principal analyst at EIR, upstream deal markets are “heading into the most challenging conditions we have seen since the first half of 2020,” as high asset prices and limited acquisition opportunities collide with weakening crude prices affected by OPEC decisions and tariff concerns.
Despite the challenging outlook for oil assets, Enverus identifies natural gas as a potential bright spot for M&A activity, with significant interest from international buyers and private capital in assets with access to Gulf Coast markets. The company’s new AI-powered Investor Analytics tool indicates that management teams were already expressing concerns about high asking prices and limited opportunities before the recent market volatility.
For more detailed information, including the top five deals of the quarter and extended commentary, readers can view Enverus’ full announcement.
