First-quarter upstream mergers in the US reach a two-year high amid expectations of sustained higher oil prices.
US upstream mergers and acquisitions totaled $38 billion in Q1 2026, the highest quarterly value in two years. The rebound follows a period of subdued dealmaking, driven by a more stable oil price environment and expectations of prolonged strength in energy markets.
Activity slowed sharply in March due to volatility linked to Middle East tensions, but the overall quarterly print reflects a broader consolidation trend. Analysts suggest the sector is entering a new wave of mergers, fueled by both large corporate deals and private asset transactions.
The surge in M&A signals confidence in long-term oil market fundamentals, though near-term geopolitical risks remain a key factor for deal flow.