U.S. Upstream M&A Market Rebounds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Newsfilter
- Market Recovery: According to Enverus, the U.S. upstream M&A market reached $23.5 billion in announced deals in Q4 2025, pushing full-year activity to $65 billion, indicating a recovery driven by private equity teams and international buyers.
- International Buyer Activity: International investments in U.S. upstream markets soared to $7.4 billion in 2025, with $6 billion in Q4, primarily targeting Gulf of Mexico and DJ Basin assets, reflecting intensified competition for limited resources.
- Major Transactions: The largest deal in Q4 was the merger between SM Energy and Civitas Resources, involving significant holdings in both the Permian and DJ Basins, highlighting a shift towards non-core regional opportunities.
- Future Outlook: Enverus expects active upstream M&A in 2026, supported by private capital and sustained international interest, indicating a market shift towards gas-weighted plays and non-core regional opportunities.
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Analyst Views on SM
Wall Street analysts forecast SM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SM is 30.00 USD with a low forecast of 23.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
4 Hold
0 Sell
Moderate Buy
Current: 19.180
Low
23.00
Averages
30.00
High
42.00
Current: 19.180
Low
23.00
Averages
30.00
High
42.00
About SM
SM Energy Company is an independent energy company. The Company is engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids (NGLs) in the states of Texas and Utah. Its asset portfolio comprises assets in the Midland Basin of West Texas, the Maverick Basin of South Texas, and the Uinta Basin of northeastern Utah. Its Midland Basin assets are located in the Permian Basin in West Texas, are comprised of over 110,000 net acres, and include its RockStar assets in Howard and Martin counties, Sweetie Peck assets in Upton and Midland counties, and Klondike assets in Dawson and northern Martin counties. Its South Texas assets are comprised of over 155,000 net acres located in Dimmit and Webb counties, Texas. Its overlapping acreage position in South Texas covers a portion of the western Eagle Ford shale and Austin Chalk formations. Its Uinta Basin assets comprise over 63,300 net acres located in northeastern Utah.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Upstream M&A Market Rebounds
- Market Recovery: According to Enverus, the U.S. upstream M&A market reached $23.5 billion in announced deals in Q4 2025, pushing full-year activity to $65 billion, indicating a recovery driven by private equity teams and international buyers.
- International Buyer Activity: International investments in U.S. upstream markets soared to $7.4 billion in 2025, with $6 billion in Q4, primarily targeting Gulf of Mexico and DJ Basin assets, reflecting intensified competition for limited resources.
- Major Transactions: The largest deal in Q4 was the merger between SM Energy and Civitas Resources, involving significant holdings in both the Permian and DJ Basins, highlighting a shift towards non-core regional opportunities.
- Future Outlook: Enverus expects active upstream M&A in 2026, supported by private capital and sustained international interest, indicating a market shift towards gas-weighted plays and non-core regional opportunities.
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S&P MidCap and SmallCap Index Changes Announced
- MidCap Addition: TTM Technologies (TTMI) will be added to the S&P MidCap 400 on January 30, 2026, highlighting its recognition in the information technology sector, which is expected to enhance its market liquidity and investor interest.
- MidCap Deletion: Civitas Resources (CIVI) will be removed from the S&P MidCap 400 on the same date, which may impact its stock performance and market confidence, reflecting its relative weakness in the energy sector.
- SmallCap Addition: Amneal Pharmaceuticals (AMRX) will join the S&P SmallCap 600 on January 30, 2026, strengthening its market position in the healthcare industry and likely attracting more investor attention.
- SmallCap Deletion: TTM Technologies (TTMI) will also be removed from the S&P SmallCap 600 on the same date, indicating its poor performance in the small-cap market, which may lead investors to reassess its investment value.
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