The upstream energy sector completed $42 billion in mergers and acquisitions during the final quarter of 2025, bringing the total deal value for the year to $108 billion. Notable transactions included SM Energy’s $12.8 billion purchase of Civitas Resources. Earlier in the year, Devon Energy’s $58 billion acquisition of Coterra Energy marked the largest deal and is expected to influence deal activity in 2026.
Looking ahead, ongoing oil price fluctuations are likely to impact asset valuations, potentially encouraging more merger-of-equal transactions and gas-focused deals, particularly in shale regions. International exploration is also anticipated to gain momentum, with interest in frontier plays across Latin America and Sub-Saharan Africa, as well as new conventional acreage opportunities in the Middle East and North Africa.
**Why this matters**
The strong deal flow in 2025 demonstrates resilience in the upstream sector despite economic challenges and volatile energy prices. The trend toward strategic acquisitions and international exploration highlights how companies are positioning themselves to adapt to changing market conditions and diversify their asset portfolios in 2026.
Source: NewsData