U.S. oil and gas M&A slumps as low crude prices keep buyers in the dugout

Public mergers and natural gas acquisitions step up to the plate  but only hit $9.7B in 3Q25 deals

CALGARY, AB, Oct. 22, 2025 /PRNewswire/ -- Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the leading energy-dedicated SaaS company harnessing generative AI across its solutions, has released its 3Q2025 U.S. oil and gas M&A report.

After a hot start to the year, upstream mergers and acquisitions slid into a slump in the third quarter, with deal value dropping to $9.7 billion, marking the third straight quarterly decline. Persistently low crude prices have kept many buyers on the bench, particularly for oil-weighted private equity-backed oil and gas exits that fueled much of the activity in the recent past.

"Crude prices in the mid-$60s or worse have made it tough for sellers, especially private equity firms with oil-weighted assets," said Andrew Dittmar, principal analyst at EIR. "Most remaining shale M&A opportunities need stronger pricing to justify public companies paying for the undeveloped locations."

Still, the quarter wasn't a complete shutout. SMID-cap corporate combinations and gas-weighted deals provided some action. Notable transactions include Crescent Energy's (CRGY) acquisition of Vital Energy (VTLE) for more than $3 billion in stock and assumed debt and Berry Petroleum's (BRY) $717 million sale to California Resources Corporation (CRC).

"Consolidation among SMID-cap companies is becoming the obvious strategic path forward in U.S. oil and gas M&A as high-quality inventory from private sellers becomes scarce and challenging for these companies to buy given their low trading multiples," Dittmar noted.

Natural gas assets emerged as a bright spot in 3Q25. Buyers remain constructive on the commodity as LNG exports and rising datacenter power demand fuel expectations for higher prices, including seeking secondary gas supply sources.

"Natural gas is gaining momentum heading into 4Q25 and 2026," said Dittmar. "Interest is broad-based, including international firms and private capital actively pursuing opportunities."

Looking ahead, upstream M&A may stay in a slump as low oil prices keep private sellers in the dugout, but SMID-cap consolidation and natural gas deal flow could still deliver extra innings for U.S. oil and gas mergers.

"The market is adapting to lower oil, and we expect strategic consolidation and targeted acquisitions to keep M&A activity moving forward," concluded Dittmar.

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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

SOURCE Enverus