Enverus Intelligence Research recently reported a strong start to 2026 in the nation’s upstream M&A (mergers and acquisitions) activity and market outlook. Enverus said May 13 that U.S. upstream deal value reached $38 billion in first quarter – the highest quarterly total in two years. Enverus said May 13, “Higher oil prices are expected to accelerate a rebound in dealmaking, particularly by enabling more private E&Ps to pursue sales while supporting continued corporate consolidation.”
The corporate consolidation of Devon Energy and Coterra Energy valued at $25.4 billion contributed about two-thirds of deal value in Q1.
Andrew Dittman, principal analyst, said, after a pause in activity in March, “The case for higher-for-longer oil prices is strengthening and creating the setup for an M&A rebound. We expect that to translate into more private companies coming to market – something we are already starting to see – and continued consolidation among public operators.” Better pricing is expected to encourage more private E&Ps to bring assets to market, including a handful of remaining targets in Permian Basin.