Upstream M&A sails to $17 billion in 1Q25
- Editor
- Apr 24
- 1 min read
Whats Happening:
Upstream M&A activity started strong in 2025 with $17 billion in deal value, marking the second-best start to a year since 2018. However, the market is facing challenges due to OPEC actions and tariff issues, which are creating volatility and potentially impacting future deals. Buyers are feeling pressure from limited acquisition opportunities and high asking prices for undeveloped drilling inventory.
Key Moves:
Upstream M&A reached $17 billion in deal value in Q1 2025
Diamondback Energy set a record in the Permian Basin with its acquisition of Double Eagle IV
Natural gas assets with access to Gulf Coast markets are attracting significant interest
By The Numbers:
$17 billion in upstream M&A deal value in Q1 2025
Second-best start to a year since 2018
95% of U.S. energy producers partnered with Enverus
Key Quotes:
"Upstream deal markets are heading into the most challenging conditions we have seen since the first half of 2020. High asset prices and limited opportunities are colliding with weakening crude," said Andrew Dittmar, principal analyst at EIR.
"Volatility and lower prices make deals tough right now but will create opportunities for nimble buyers with a longer-term outlook," said Dittmar.
Bottom Line:
While upstream M&A started strong in 2025, the market is facing significant challenges due to OPEC actions, tariff issues, and high asset prices. These factors are creating a challenging environment for deals, but may also present opportunities for buyers with a long-term perspective. The natural gas sector remains a potential bright spot, with strong interest in assets connected to Gulf Coast markets.
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