Upstream M&A Rebounds to $65 Billion, Permian Lags

International and ABS-backed buyers fuel activity, but Permian deal flow remains limited

Jan. 29, 2026 at 4:39pm

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Upstream merger and acquisition activity rebounded at the end of 2025, reaching $65 billion for the full year, with $23.5 billion in deals announced in the fourth quarter. However, the Permian Basin was largely left out of this M&A surge, with the exception of a $7.7 billion acquisition. Enverus Intelligence Research found that fresh capital from international buyers and asset-backed securitization (ABS) groups fueled much of the activity, while Permian-focused deals were scarce due to a lack of quality assets on the market.

Why it matters

The rebound in upstream M&A, driven by new sources of capital, signals increased investment and activity in the oil and gas industry. However, the Permian's relative absence from this wave of deals raises questions about the basin's future growth prospects, as operators appear hesitant to divest their most valuable assets even as new players enter the market.

The details

The fourth quarter saw $23.5 billion in announced upstream deals, with the top five transactions occurring outside the Permian Basin. The exception was SM Energy's $7.7 billion acquisition of Civitas Resources. Enverus Intelligence Research found that international capital and ABS-backed buyers were particularly active, underscoring a broadening of the buyer mix. In contrast, Permian-only deals made up a small portion of the quarter's value, reflecting the limited availability of high-quality assets in the basin and reluctance among Permian-focused operators to exit.

  • In the fourth quarter of 2025, upstream M&A activity reached $23.5 billion in announced deals.
  • For the full year 2025, upstream M&A totaled $65 billion.

The players

Enverus Intelligence Research

An energy research firm that analyzed the fourth quarter and full-year upstream M&A activity.

Andrew Dittmar

A principal analyst at Enverus Intelligence Research who provided insights on the M&A trends.

SM Energy

An oil and gas company that acquired Civitas Resources for $7.7 billion, one of the few Permian-focused deals in the quarter.

Civitas Resources

An oil and gas company that was acquired by SM Energy for $7.7 billion.

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What they’re saying

“Fresh capital is back in the field, and the buyer mix has broadened in a way that keeps pricing firm. Reloaded private equity is hunting, ABS-backed groups are bidding aggressively for cash-flowing production, and international companies are no longer limiting their U.S. interest to the most obvious gas trades. That combination helped deal activity finish the year in strong form and sets up an active 2026.”

— Andrew Dittmar, Principal Analyst, Enverus Intelligence Research

“The outlook for large-scale M&A in the Permian still looks challenging for 2026, although there are several drivers that could nudge purely Permian-focused activity back up.”

— Andrew Dittmar, Principal Analyst, Enverus Intelligence Research

The takeaway

The rebound in upstream M&A activity, fueled by new sources of capital, highlights the industry's resilience and the potential for increased investment. However, the Permian Basin's relative absence from this wave of deals raises concerns about the basin's future growth prospects, as operators appear reluctant to divest their most valuable assets even as new players enter the market.