By Esther Ososanya
Dealmaking in the U.S. upstream oil and gas sector dropped sharply in Q2 2025. Investor caution increased as energy and equity markets turned volatile.
Merger and acquisition (M&A) deals fell by 21%, totalling just $13.5 billion between April and June.
This slump contrasts sharply with recent performance. In 2023, the sector recorded an all-time high of $192 billion in deals. However, the first half of 2025 has seen only $30.5 billion change hands.
That marks a 60% decline from the same period last year.
Volatility Sends Strong Warning Signals
“Volatility in commodity and equity markets raised a major yellow flag for M&A,” said Andrew Dittmar, principal analyst at Enverus Intelligence Research.
Crude oil prices swung wildly during the quarter. Prices dipped to $57.13 per barrel in early May, then climbed to $75.14 by mid-June. These swings were triggered by U.S. trade tariffs, recession fears, and ongoing geopolitical tensions in the Middle East.
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Few Deals, Big Numbers
Despite the overall slump, two large transactions dominated the quarter. EOG Resources bought Encino Acquisition Partners for $5.6 billion. Shortly after, Viper Energy acquired Sitio Royalties for $4.1 billion. Together, these two deals made up over 75% of Q2’s total deal value.
“The engine of M&A has sputtered,” Dittmar said. He explained that most top-tier U.S. assets have already been acquired. As a result, companies may now seek opportunities in other markets, especially in Canada or Argentina’s Vaca Muerta basin.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
