U.S. Upstream Deals Reach $12.6 Billion in Third Quarter as Divestitures Pick Up
Key Facts
The value of U.S. upstream deals reached $12.6 billion in the third quarter of 2026, up from $11.5 billion in the second quarter, according to Enverus Intelligence Research. Deals between private and public companies accounted for two-thirds of the announced value during the quarter. Enverus attributed this to private equity firms seeking exits as oil prices rose, alongside continued demand from public-company buyers for producing inventory. The company said "continued demand for inventory from public buyers" was one factor behind deal activity. The figures place the quarter in the context of a market where companies are competing for existing producing assets and opportunities to add resources to their portfolios.
Magnolia Oil & Gas's purchase of WildFire Energy was the largest deal of the quarter, with an announced value of $4.062 billion in the Eagle Ford, according to Enverus data. Magnolia completed the acquisition on September 10 and included WildFire's operating results in its consolidated statements from September 11, according to the company's filing with the U.S. Securities and Exchange Commission. The deal shows how a large acquisition can add assets and production to a public company during the same period in which it is recorded. Its location in the Eagle Ford also aligns with growing interest in the basin as oil prices rise. Enverus said the Eagle Ford is on track to record its highest annual deal value since 2018, with interest in redeveloping previously producing acreage.
The Permian Basin remained the most consistent driver of activity, contributing about one-third of announced third-quarter deal value, according to Enverus. But that share does not include all activity in the basin, because the price of Continental Resources' acquisition of FireBird Energy was not disclosed. Elsewhere, SOCAR's purchase of Comstock Resources assets in the Haynesville was the quarter's third-largest deal, valued at $1.65 billion. The transactions show the range of assets that attracted buyers, from oil fields to gas resources. Activity was not limited to domestic buyers; international investors bought exposure to U.S. gas, while asset-backed securitization groups targeted mature production.
Enverus analyst Andrew Dittmar said "higher oil prices and steady international demand for U.S. gas continue to push asset prices higher." He added that buyers are evaluating opportunities beyond assets with well-defined inventory. On the public-company side, Matador Resources and Magnolia Oil & Gas added inventory, while the need for new producing resources led some private companies to seek buyers. Enverus also links this activity to private equity firms exiting their assets, while buyer appetite remains intact. The report indicates that demand is not concentrated in one type of asset or buyer, but includes public companies, international investors and groups focused on mature production.
Deal activity comes amid an oil market that saw prices rise in October; the U.S. Energy Information Administration estimated the average Brent crude price at $124 per barrel, up $10 from September. The agency attributed the increase to declining inventories and continued shipping disruptions. Average oil production outages in the Middle East reached 2.5 million barrels per day in October, compared with a peak of 10.9 million barrels per day in May. The agency forecast an average Brent price of about $100 per barrel in November and December, with Iranian oil exports remaining limited over the forecast period. It also estimated that global liquid fuels consumption would fall by 2 million barrels per day in 2026, before demand grows by an equal amount on average in 2027.
Enverus expected public companies to continue selling noncore assets and move toward a mix of public and private buyers. It said industry consolidation could continue as core resources decline. The Energy Information Administration expects U.S. crude oil production to average 13.9 million barrels per day in 2026, then rise to 14.3 million barrels per day in 2027. In its published forecast, the agency said global oil prices rose for a third consecutive month in October amid declining inventories, attacks on tankers in the Gulf and shipping restrictions, and projected Brent would remain near $100 per barrel for the rest of the year. Upcoming releases include the EIA's weekly oil report, scheduled for November 12 at 12 p.m. and 2 p.m. Eastern time, followed by its next Short-Term Energy Outlook on December 8, 2026.