Oil and gas dealmaking is gaining momentum as private equity firms and energy investors bring major US upstream assets to market, with more than $20 billion in oil and gas companies reportedly in play.
The activity is creating new opportunities for buyers and sellers across key US oil-producing regions, particularly the Permian Basin in Texas and New Mexico and the Denver-Julesburg Basin in Colorado.
Private Equity Firms Test the Market
Several private equity-backed oil and gas companies are reportedly being positioned for potential sales.
EnCap Investments is seeking about $2 billion for Ridge Runner, an operator in the Permian Basin, while Quantum Capital Group has appointed advisers to explore the sale of Bison Oil and Gas, which operates in the Denver-Julesburg Basin.
Greenbelt Capital Partners is also exploring a potential sale of TRP Energy, a Permian Basin oil and gas explorer that could reportedly be valued at more than $3 billion.
The activity highlights renewed interest in the US upstream market as investors assess opportunities to realise value from established oil and gas assets.
US Upstream Deal Activity Gains Momentum
The potential sales come as broader oil and gas M&A activity has strengthened.
US upstream oil and gas dealmaking reached about $38 billion in the first quarter of 2026, according to Enverus data reported by Reuters, representing the highest quarterly level in two years. The $25 billion Devon-Coterra merger accounted for a significant portion of the quarter’s activity.
Global upstream M&A also showed renewed momentum in April, reaching $20.4 billion across 30 transactions, according to Rystad Energy. North America accounted for approximately $17.3 billion of that total.
Higher Oil Prices Support Asset Sales
Improved commodity prices have helped create a more active environment for oil and gas transactions.
Higher oil prices can improve the cash-flow outlook for producing assets, potentially making them more attractive to prospective buyers while giving existing investors an opportunity to assess divestments.
Private equity interest in traditional energy assets has also continued to increase. S&P Global reported that global private equity and venture capital investment in oil, gas and coal reached $14.7 billion by the end of July 2026, already exceeding the full-year 2025 total.
Permian Basin Remains a Key Market
The Permian Basin continues to play an important role in US oil and gas transactions, with producers and investors assessing opportunities across established producing acreage and development portfolios.
The region’s scale, existing infrastructure and established production base continue to make Permian assets significant targets for energy companies and private investors.
Oil & Gas M&A Pipeline Expands
The increase in potential transactions suggests that the current wave of dealmaking could extend beyond individual acquisitions.
Rystad Energy estimates that the global upstream M&A pipeline had increased to approximately $146 billion, with North America accounting for around $76 billion.
For the oil and gas industry, continued M&A activity could reshape ownership of producing assets while creating opportunities across exploration and production, oilfield services, infrastructure and associated energy supply chains.
The latest activity indicates that US upstream oil and gas assets remain a significant focus for investors as companies evaluate portfolio strategies and market opportunities.
