US upstream M&A slows in second quarter as Haynesville buyers shift to Anadarko and Eagle Ford
Transaction count tied a post-2020 low in the first quarter and weakened further through June as gas-weighted buyers avoided the Haynesville.
US upstream mergers and acquisitions slowed in the second quarter of 2026 after a $38 billion first quarter, with gas-weighted buyers stepping back from the Haynesville Shale and hunting for deals in the Anadarko Basin, Eagle Ford and Rocky Mountains instead, according to Enverus Intelligence Research. Only eight transactions above $100 million cleared in the first quarter, tying a post-2020 low, and activity weakened further through June as crude volatility discouraged new commitments.4,1
The shift matters because the deals that did complete skewed away from the Haynesville. Diversified Energy's acquisition of Camino Natural Resources, the largest gas-weighted transaction in the second quarter, targeted the gassier end of the SCOOP/STACK in the Anadarko Basin rather than the Haynesville, EIR said. Buyers are now hunting the Anadarko, Eagle Ford and Rocky Mountains for what EIR described as more attractive entry points.4
First-quarter activity was driven by corporate consolidation. Devon Energy's $25.4 billion merger with Coterra Energy accounted for roughly two-thirds of the quarter's total value, followed by Ovintiv's $7.5 billion sale of Anadarko Basin assets to Flywheel Energy, a buyer using asset-backed securitisation financing. The Flywheel deal underscored sustained appetite from ABS-linked acquirers, but the overall transaction count still hit multi-year lows.1,4
Deal flow slowed sharply in March (2026-03). Crude price volatility tied to Middle East conflict introduced enough uncertainty to pause buyer appetite, EIR noted, even though higher oil prices were expected to eventually trigger a wave of new deals as private sellers came to market. Over the past six months through the end of June (2026-06), total deal value exceeded $60 billion as momentum built through the first quarter, but second-quarter data suggest that momentum has not yet returned.1,2,4
The Haynesville slowdown marks a shift. Gas-weighted buyers had been active in the play earlier in the cycle, but second-quarter data show them pivoting to other basins. The Anadarko, Eagle Ford and Rockies now offer what EIR described as more attractive buyer opportunities, a signal that Haynesville valuations or execution risk have put off consolidators.4
Eagle Ford activity picked up in recent months. Stone Ridge acquired assets from Baytex Energy for $2.3 billion. The basin has evolved into a hybrid play, combining stable crude output around 1.1 million barrels per day with rising natural gas production, driven in part by EOG Resources' Dorado gas project. Dorado output is expected to reach 1 billion cubic feet per day in 2026, up 33 percent on the year, with low breakeven costs and premium access to Gulf Coast markets.3
Eagle Ford production rose 2.2 percent on a barrels of oil equivalent basis in the twelve months ending March (2026-03) compared to the prior year, according to Mercer Capital. Daily output ranged between 2.36 and 2.46 million barrels of oil equivalent over that period, reflecting modest growth and stable crude production. Natural gas volumes are climbing as operators exploit Gulf Coast export infrastructure.3
Yet the broader upstream M&A environment remains constrained by the same factors that slowed March (2026-03) deal flow. Andrew Dittmar, principal analyst at Enverus, said higher oil prices should translate into more private companies coming to market and continued consolidation among public operators, but the timing depends on crude price stability.1
One formation beneath the Eagle Ford is running out. The Buda Limestone, which has produced since around 1930, holds an estimated 184 billion cubic feet of gas and 12 million barrels of oil in technically recoverable resources. Since production began, the formation has yielded 204 million barrels of oil — equivalent to ten days of US consumption at 2025 rates — and 287 billion cubic feet of gas, equal to three days of current consumption.3
The return of gas-weighted buyers to the Haynesville — or their continued absence — will signal whether the basin's economics still support consolidation at current strip pricing. EIR projected that higher oil prices would accelerate private sales, but the second-quarter pause shows that volatility alone can override price levels when buyers reassess execution risk.1,4