Permian Demand Drives U.S. Upstream M&A Despite Q2 Slowdown
U.S. upstream mergers and acquisitions slowed significantly in Q2 due to crude price volatility, resulting in the third-lowest quarterly total since 2020.
Total upstream M&A reached $9.1 billion during the quarter, down 76% from Q1 and 33% from a year earlier.
More than 40% of the quarter's value came from the Bureau of Land Management's record-setting New Mexico lease sale, which generated over $4 billion.
Enverus said volatility tied to the Iran conflict and a weaker natural gas outlook widened bid-ask spreads and delayed transactions rather than reducing buyer interest.
Public operators remained the dominant buyers during the quarter, led by record bids for Permian acreage at the New Mexico lease sale and acquisitions including Matador Resources' $1.3-billion purchase of Paloma Permian and Magnolia Oil & Gas' acquisition of WildFire Energy in the Eagle Ford.