FINWIRES · TerminalLIVE
FINWIRES

Global Energy Deal Value Slumps in March, Rystad Energy Says

By

Global upstream oil and gas dealmaking slowed sharply in March, with the total value of transactions falling to $5.55 billion from $32 billion in February, even as the number of deals remained largely steady, Rystad Energy said in a note on Wednesday.

The sector recorded 35 transactions in March, compared with 34 the previous month, indicating buyers remained active but focused on smaller acquisitions, it said.

South America accounted for 55% of total deal value during the month, while North America contributed 16% and Asia 13%.

The largest transaction was Philippine-based Prime Infrastructure's acquisition of SierraCol Energy for an estimated $1.4 billion.

SierraCol, backed by global investment firm, The Carlyle Group, produced about 43,200 barrels of oil equivalent per day between September 2025 and January 2026. The deal highlights continued Asian investor interest in Latin American producing assets.

Colombia also attracted attention after Parex Resources agreed to buy Frontera Energy's Colombian portfolio for $725 million, topping an earlier $601 million bid from Colombian oil and gas company, GeoPark. The competing offers suggest that producing assets with near-term cash flow remain attractive despite weaker commodity prices.

Rystad said producing asset valuations held relatively stable in the first quarter of 2026. Producing resources averaged $4.60 per barrel of oil equivalent, up slightly from $4.50/boe in the previous quarter, while under-development assets rose to $3/boe from $2.50/boe.

Discovery-stage assets weakened, however, slipping to $1.50/boe from $1.70/boe, reflecting more cautious sentiment toward higher-risk exploration projects.

North American deal value dropped roughly 97% month-on-month to about $862 million, marking the first time regional activity fell below $1 billion since June 2025.

Most of that total came from Canadian Natural Resources' C$765 million ($559 million) acquisition of Alberta assets from Tourmaline, extending a broader consolidation trend in Canada's shale and oil sands sector.

Despite the March slowdown, Rystad estimates about $95 billion in upstream assets remain on the market globally, with North America accounting for nearly $57 billion of potential deals.

Related Articles

Commodities

Enel Q1 Power Generation Rises as Thermal Output Offsets Hydro Decline

Enel reported Q1 earnings Thursday, showing total production of 51.1 terawatt-hours, up 1.8% from 50.2 TWh a year earlier.Total renewables production stayed roughly the same at 31.7 TWh, while nuclear generation declined 4.4% to 6.8 TWh in Q1 from 7.1 TWh a year earlier.The company reported a 5.3% decline in hydro generation to 13.8 TWh, compared with 14.6 TWh a year earlier.Total wind generation rose 4.3% to 11.9 TWh for the quarter, up from 11.4 TWh a year earlier.Generation from solar and others was 4.8 TWh, up from 4.4 TWh a year earlier, while geothermal production for the quarter was down 1.9% to 1.3 TWh.Total thermal generation climbed 17.1% to 9.2 TWh for the quarter ended March 31, up from 7.9 TWh a year earlier.Coal generation fell 74% to 123 gigawatt-hours, while combined-cycle gas turbine generation was up 28.5% to 7.8 TWh. Oil and gas generation declined 2% to 1.3 TWh.Enel generated 25.5 TWh of electricity in Europe during Q1, led by 16.9 TWh in Iberia and 8.6 TWh in Italy.Generation in the US reached 7.1 TWh during the quarter, while Canadian operations produced 0.4 TWh.Latin America and other markets generated 14.8 TWh in Q1, including 5.4 TWh in Chile, 4.4 TWh in Colombia and Central America and 3.7 TWh in Brazil.Total electricity distributed in Q1 was 120.9 TWh, up from 117.4 TWh a year earlier, as Italy's distribution volumes rose to 53.3 TWh from 51.8 TWh a year earlier.Electricity distribution in the Iberia segment increased to 35.8 TWh in Q1 from 34.4 TWh a year earlier, while Latin America distribution volumes rose to 31.9 TWh from 31.2 TWh.Total electricity sales declined to 59.2 TWh in Q1 from 63.8 TWh a year earlier.Gas sales declined to 2.4 billion cubic meters in Q1 from 2.5 bcm a year earlier, while total gas customers remained broadly stable at 5.7 million.

Commodities

US Natural Gas Update: Futures Rise on Small Storage Injection

US natural gas futures erased early losses and maintained higher prices in after-hours trade on Thursday after government data showed a smaller-than-expected increase in domestic gas inventories, triggering short covering and reinforcing expectations that the spring supply-demand balance may be tightening modestly.Both the front-month Henry Hub futures and the continuous contract rose 1.90% to $2.782 per million British thermal units.The US Energy Information Administration said natural gas inventories for the week ended May 1 rose by 63 billion cubic feet, below analyst expectations for a 72-80 Bcf build and under the five-year average increase of 77 Bcf for the week.The bullish storage surprise prompted buying in front-month contracts after futures had traded lower ahead of the report, Barchart said.Despite the smaller injection, supply levels remain ample. US gas inventories were 2.8% above year-ago levels and 6.7% above the five-year seasonal average.The Energy Buyers Guide said the market will likely be focused on "whether this storage miss was a one-off or a harbinger of a more durable shift in the underlying fundamental balance".Analysts at Gelber & Associates said the price lift "reinforced the idea that the spring balance is not quite as loose as consensus had assumed," the firm said, adding that the market still viewed the move as a near-term adjustment rather than the start of a sustained rally, noting that elevated inventories continue to limit upside potential for winter contracts."The rally is doing more to firm up summer risk than to meaningfully reprice next winter when storage remains above the five-year average," the firm said.Analysts also pointed to competing forces in the broader market, with strong LNG exports supporting prices while robust domestic production continues to weigh on sentiment.According to Barchart, citing data from BNEF, US lower-48 dry gas production on Thursday was estimated at 110.9 Bcf per day, up 4.5% from a year earlier. Demand across the lower 48 states was estimated at 71.0 Bcf/d, up 10.2% year over year.Flows to US LNG export terminals were estimated at 17.7 Bcf/d, down 5.9% from the prior week due to maintenance slowdowns.Gelber said the market can pop on a bullish storage surprise but still "needs either sustained heat, a more persistent slowdown in supply growth, or a string of smaller injections to make the move stick beyond the near-term contracts."

Commodities

Market Chatter: $7 Billion Oil Bets Placed Ahead of Trump's Iran Announcements Spark Scrutiny

Oil market bets totaling as much as $7 billion were placed ahead of major Iran-related announcements by US President Donald Trump in March and April, a Reuters analysis of exchange data, published Thursday, showed, raising fresh scrutiny over possible insider trading.The trades, spread across crude, diesel and gasoline futures on the Intercontinental Exchange (ICE) and the Chicago Mercantile Exchange (CME), far exceed previously reported positions worth about $2.6 billion.Reuters said it could not determine who placed the trades or whether they originated in the US or abroad.The US Commodity Futures Trading Commission is investigating the activity, a person familiar with the matter told Reuters in April, but has not publicly confirmed a probe.Separately, ABC News reported Thursday that the US Department of Justice is also investigating oil trades linked to the Iran conflict.The trades involved short positions that profited from sharp declines in oil prices following Trump's announcements on Iran. Traders first identified unusual activity on March 23, minutes before Trump delayed and threatened attacks on Iranian power infrastructure, sending oil prices sharply lower.Similar trading patterns appeared on April 7, before Trump announced a ceasefire with Iran; on April 17, before Iranian officials discussed reopening the Strait of Hormuz; and again on April 21, before Trump extended the ceasefire.In response to' request for comment, White House spokesperson Davis Ingle said, "All federal employees are subject to government ethics guidelines that prohibit the use of nonpublic information for financial benefit."He added that any implication that administration officials "are engaged in such activity without evidence is baseless and irresponsible reporting."Reuters' expanded analysis found coordinated sell orders across Brent and West Texas Intermediate crude futures, as well as European diesel and US gasoline contracts, often executed within minutes of key announcements.It found that on March 23 alone, traders sold roughly $2.2 billion in oil and fuel futures contracts shortly before Trump's announcement. Oil prices later fell by over 10%, while fuel prices dropped by about 12%.Reuters cited information from Adi Imsirovic, a veteran oil trader and associate at the Center for Strategic and International Studies, who said the trades appeared "well informed" and noted regulators could trace the activity through exchange data.ICE, CME, the Justice Department, and the CFTC did not immediately respond to requests for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$CME$ICE