The strong performance was largely driven by the blockbuster merger between shale producer Devon Energy and rival Coterra Energy, a transaction valued at approximately $25 billion. The companies finalized the merger last week after first unveiling the agreement in February.
The combination instantly became the dominant transaction of the quarter, accounting for a substantial portion of overall industry deal activity.
Both Devon and Coterra maintain operations across several major shale formations in the United States, including the Delaware portion of the Permian Basin spanning Texas and New Mexico, as well as Oklahoma’s Anadarko Basin. Industry analysts believe the merger positions the combined company for stronger operational efficiency and greater production scale amid a changing global energy landscape.
Despite the strong quarterly figures, momentum in the deal market slowed significantly in March as oil prices became increasingly volatile following geopolitical tensions in the Middle East.
The instability followed U.S.-Israeli strikes on Iran in February, an escalation that widened regional conflict and disrupted shipping activities through the strategically important Strait of Hormuz, one of the world’s busiest oil transit routes.
Since the outbreak of the conflict on February 28, global benchmark Brent crude prices have experienced dramatic swings, dropping as low as $77.74 per barrel before surging to a peak of $118.35 per barrel.
Analysts at Enverus, however, believe the recent rise in oil prices may ultimately reignite merger activity across the sector.
According to the firm, stronger crude prices could encourage more privately owned exploration and production companies to seek buyers while also increasing the appetite of publicly traded energy firms for acquisitions and consolidation.
“The market entered a temporary holding pattern as volatility clouded the outlook for oil prices, but the case for higher-for-longer oil prices is strengthening and creating the setup for an M&A rebound,” said Andrew Dittmar, principal analyst at Enverus Intelligence Research.
“We are likely heading into another tsunami of consolidation as higher oil prices supercharge both private companies going to market and public E&P appetite for deals, both corporate consolidation and private asset sales,” he added.
Another major transaction recorded during the quarter involved Mitsubishi Corporation, which acquired Aethon Energy for $7.6 billion. The acquisition represents Mitsubishi’s largest deal to date and forms part of the company’s broader strategy to strengthen its global natural gas supply chain.
Industry observers say the renewed wave of consolidation reflects growing confidence among producers seeking scale, operational resilience, and stronger positioning amid evolving global energy demands and geopolitical uncertainty.