Global dealmaking in oil and gas upstream was muted in 2025, Enverus says

Core Insights - Dealmaking in the international upstream oil and gas market was subdued in 2025, totaling just $18 billion, significantly below the historical average of $60 billion [1][1][1] - The decline in mergers and acquisitions (M&A) activity is attributed to fewer high-quality resources and lower oil prices, with major companies focusing on organic growth rather than acquisitions [1][1][1] Industry Trends - Latin America represented half of the announced international deal value, driven by consolidation in the Vaca Muerta shale formation in Argentina and portfolio repositioning in Brazil [1][1] - Argentina experienced its busiest M&A year since 2014, as regional specialists expanded following the exit of international oil companies [1][1] Company Activities - Vista Energy acquired Petronas Argentina for approximately $1.45 billion, highlighting the trend of independent and private buyers acquiring mature assets from larger firms [1][1] - Oil majors and state-owned firms in Brazil sold mature offshore assets to domestic operators while increasing their focus on deepwater projects [1][1] Future Outlook - Enverus anticipates that international upstream M&A will remain subdued unless more development-stage resources become available, although higher crude prices due to geopolitical events could enhance near-term cash flow for M&A [1][1] - The volatility in commodity prices may widen bid-ask spreads, potentially leading to a downturn in transactions until market stability is restored [1][1]