Enverus: U.S. Oil and Gas M&A Market is Bracing Most Challenging Conditions Since Pandemic

SEATTLE (Oil Monster): The U.S. upstream oil and gas M&A sector is reportedly preparing for the most difficult circumstances since the Covid-19 outbreak, according to a warning from leading analytics firm Enverus. It attributed the pessimistic view to the decline in oil prices and the scarcity of shale acreage. The forecast is made in spite of the prior quarter's strong deal-making activity.

In the quarter that concluded on March 31, 2025, $17 billion in agreements were announced. Two significant transactions—Diamondback Energy's purchase of Double Eagle IV in the Midland basin and Viper Energy's purchase of minerals—were the primary drivers of this. Together, these two transactions were responsible for over half of the quarterly value.

ALSO READ:

Enverus Foresees 2025 as a Banner Year for Natural Gas Plant Acquisitions

Haynesville Natural Gas Market will Shift Amid Price Volatility, Enverus Says

According to Andrew Dittmar, chief analyst of Enverus Intelligence Research, upstream transaction markets are about to enter the most difficult circumstances since the first half of 2020. He continued by saying that the M&A industry is under pressure due to high asset values and a lack of available M&A possibilities.

Citing a stalemate between buyers and sellers, Enverus noted that buyers are hesitant to pay as much, particularly in light of declining oil prices, while sellers are reluctant to unload assets due to a lack of high-quality shale inventory.