Key Facts
• July 23, 2025: Enverus reports U.S. oil and gas M&A slowdown in Q2.
• Q2 M&A deals totaled $13.5 billion, a 21% drop from the previous quarter.
• H1 2025 M&A value reached $30.5 billion, down 60% year-on-year.
• 2023 saw record M&A activity at $192 billion, the highest in recent years.
• Market and stock volatility deterred companies from pursuing M&A deals.
• Analyst Andrew Dittmar highlights limited remaining targets and slowing M&A momentum.
• Companies may need to explore foreign assets in Canada and Argentina.
Summary
The U.S. oil and gas industry’s upstream M&A activity slowed significantly in Q2 2025, with total deal value dropping 21% from the previous quarter to $13.5 billion. The first half of 2025 saw a 60% year-on-year decline, totaling $30.5 billion. This contrasts sharply with the record $192 billion in M&A activity in 2023. Market and stock volatility have been key factors in this slowdown, as companies exercise caution. Analyst Andrew Dittmar noted that the limited number of remaining targets has further decelerated M&A momentum. Looking ahead, companies may need to consider acquiring foreign assets, particularly in Canada and Argentina, to sustain growth.
