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Enverus Intelligence® Research Press Release - Enhanced geothermal systems: The future of reliable, green power for AI data centers?

Earth Powered Datacenters | Geothermal Heats Up

Big Tech is on the hunt for energy sources to meet the growing demand for clean, reliable power for artificial intelligence-driven data centers. Developers are eyeing nuclear energy, natural gas with CCS, and recently, geothermal. META recently inked a deal with XGS Energy, an advanced geothermal startup, for 150 MW of geothermal power to fuel its expanding New Mexico data centers. The project will be carried out in two phases, projected to be operational by the end of the decade. The research from Enverus Intelligence® Research shows that while enhanced geothermal is more costly than other pathways, strong power purchase agreements like the one MSFT signed for Three Mile Island’s restart demonstrate hyperscalers’ willingness to pay premiums for reliable, clean power. Together with advancements in drilling techniques and skyrocketing costs for new gas builds, this gives geothermal a competitive edge over technologies like nuclear and gas with CCS in powering the next wave of data centers.

As geothermal energy gains traction and developers continue to demonstrate their ability to operate on a commercial scale, project economics will improve, mitigating risk and lowering project financing costs. Fervo Energy, an enhanced geothermal developer, set a record this month by drilling its deepest, hottest well at 15,765 ft with a projected bottomhole temperature of 520 F in just 16 days — 80% faster than the Department of Energy’s benchmark. The day after the announcement, Fervo secured an additional $206 million in project financing for its Utah Cape Station project, which is expected to deliver 100 MW of clean baseload power by 2026 and an additional 400 MW by 2028.

Research Highlights:

Ethanol With CCS – Harvest Season for Carbon Credits – This report explores the remaining 24.7 mtpa opportunity for ethanol with carbon capture and storage, revealing which facilities and credit strategies are best positioned to unlock near-term value.
Caithness Sneak Peek Valuation – PJM Assets Justify a Premium – Enverus Intelligence^® Research (EIR) examines the potential market value of Caithness Energy’s power generation portfolio and the key factors that impact its valuation.
EVOLVE 2025 – The Energy World in 2050: Make a Call – Our primary energy outlook to 2050 is a data-driven forecast that focuses on what EIR sees as the “most likely” outcome, not an all-encompassing range of scenarios. In this presentation prepared for EVOLVE 2025 we see a future where power demand doubles, oil demand peaks and renewables grow, albeit with the robust support of natural gas. All our calls are underpinned by an oil and gas supply picture that is underwhelming and not supportive of net-zero emission ambitions, but ultimately bullish commodity prices.

Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts, and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. See additional disclosures here.

Enverus Press Release - OFS prices expected to bottom out by year’s end

How Oilfield Service Companies Can Stay Profitable in an Uncertain Market

If you’ve spent any time in the oilfield services industry, you know it’s a cyclical business. When times are good, you’re on speed dial for work. When times are tight, you’re the first to feel it. And right now, with so much uncertainty in the market, profitability becomes the top priority to sustain your business.

The question is, how do you stay profitable during this uncertain time? You start by tackling a problem no one likes to talk about — the operational drag created by disconnected processes and paper-based workflows in the oilfield.

This is the first of a three-part blog series where we’ll break down how operational efficiency — especially in ticketing and invoicing — directly impacts your bottom line. In the next posts, we’ll cover why digital field tickets are a game-changer and how service companies are slashing DSO from months to days (and in many cases to zero). Even the most automated businesses continue to seek ways to boost profitability. And for oilfield service providers, one of the most overlooked areas is slow, manual, error-prone invoicing. Does this pain sound familiar?

The Buyer/Supplier Slow Dance

Managing oilfield service payments is like choreographing a large operational dance — and right now, it’s a slow one. What’s holding service companies back from increasing their AR pace and improving cash flow? Resistance at every turn: paper field tickets, manual processes in the field and back office, and a disconnect between operations and accounting. The result?

An average delay of 34 days from order to cash.

The Life of an Oilfield Service Ticket

If you’ve worked in operations, you know the drill: field tickets get scribbled on paper, stamped by the company man at the rig site and tossed in a truck to get dropped off at the office days later. The paper tickets often sit for weeks until someone manually enters the data into a billing system. Eventually an invoice gets created (if all goes well) and routed for approval, before finally landing with the customer – only to then be subject to payment terms of a contract (e.g., net 30 or net 60). The longer that cycle takes, the longer you wait to get paid. Meanwhile, there’s risk for errors along the way and revenue leaks go unnoticed.

The companies winning in today’s market aren’t necessarily doing more work — they’re getting paid faster and smarter for the work they already do.

Let’s think back to the days before smartphones, ecommerce and the internet. You’d call your friends from a phone bolted to the kitchen wall, wait six weeks for something you ordered from a catalog, and wrestle a giant TV just to watch a game. It feels like forever ago. Yet somehow, many oilfield service operations are still running like it’s those days — and it’s quietly costing time, money, and opportunities you can’t afford to lose.

Your dad didn’t have digital invoicing. Lucky for you, times have changed.

Enverus has a solution to modernize the operations to accounts receivable process, where orders for field services that took months to get paid can be digitally submitted and paid instantly. Digitalizing field operations eliminates invoicing delays, reduces costly errors, and gives you instant visibility into job status and financials. It’s not just about speed — it’s about control.

Imagine what you could do this summer with a little extra time and cash flow to reinvest in the business.

Stay tuned for the next blog post where we’ll get into the tangible, day-to-day benefits of digital field tickets and why it’s easier than you think to make the switch.

Breaking news alert on the impact on oil prices due to Israel attacking Iran

Geopolitical tensions and oil prices rise due to the Iran-Israel conflict

In response to news that Israel has launched an attack on Iran, Al Salazar, director at Enverus Intelligence® Research (EIR), released this reaction explaining the significance on oil prices:

“Oil prices have spiked on the increased probability that an oil supply disruption will occur due to the Iran-Israel conflict. Market pundits have suggested that a geopolitical premium is now embedded in today’s oil price.

EIR maintains that the fair value of oil should be in low $80s, if based purely on OECD crude and product stock levels. Furthermore, the market has forgotten the U.S. SPR remains ~200 MMbbls below 2021 levels.

Geopolitical premium? Perhaps in options pricing. However, in terms of absolute price, we think not. EIR views the recent price moves as a knee-jerk reaction much like what occurred last October, the last time tensions boiled over. Should there be no material impact to oil supply or infrastructure, the recent uptick in oil prices, will prove transitory.

EIR believes Brent prices had been discounted up till the recent tensions, due to expectations of weaker demand given global trade uncertainty and increased OPEC supply. EIR maintains that softer balances will come 2H25 and that Brent prices will average $65/bbl for the rest of the year.”

Enverus Intelligence® | Publications delivers expert energy insights with concise summaries and deep industry analysis — helping you stay ahead of the curve.

Monitor energy trends and make informed decisions with Enverus Intelligence® Publications.

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About Enverus Intelligence® Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.

Big Tech, Big Reactors | Nuclear Powers Up the Data Center Race

Westinghouse’s CEO revealed talks with U.S. officials this week to deploy 10 large nuclear reactors as part of a broader push to back nuclear energy as data centers drive energy demand skyward. Soon after, AMZN unveiled a $20 billion plan to build data centers in Pennsylvania, including one adjacent to the Susquehanna nuclear plant with which it recently partnered. Paired with the MSFT-CEG deal, the moves underscore Big Tech’s accelerating shift toward nuclear to secure reliable, low-carbon power for the AI era.

Our analysis indicates that a new AP1000 reactor with a capacity of 1.1 GW would cost around $8.6 billion, based on data from the EIA. This would bring Westinghouse’s deployment of 10 reactors to a cost of $86 billion, exceeding the DOE’s estimate of $75 billion and marking one of the largest private pushes for nuclear energy in recent memory.

This market shift is further reinforced by recent U.S. executive orders aimed at accelerating the deployment of advanced nuclear technologies. The directives streamline approvals, encourage private investment and prioritize nuclear power for AI infrastructure and national security facilities. Together, these policy changes and the surge in long-term power purchase agreements signal that nuclear is moving from the margins to a practical, scalable solution to meet AI’s energy demands sustainably.

Highlights:

Storage in Question – Aquifer Ban Threatens Key CCUS Projects – This report examines the ripple effects of Illinois’ ban on carbon storage beneath the Mahomet Aquifer, raising urgent questions about the future of CCUS in regions with EPA-designated sole source aquifers.
Stranded Sparks – Texas Energy Fund Gas Project Withdrawals – This report analyzes how rising capital costs and supply chain delays have impacted projects in the Texas Energy Fund and assesses the economics of these plants, including the power price levels needed to improve project feasibility.
EVOLVE 2025 – Carbon Capture Strategies: The Race for Commercialization – This report, presented at Enverus EVOLVE 2025, offers an in-depth exploration of the current state of CCUS, highlighting projects that have successfully navigated economic and operational challenges to move into implementation. We examine the strategies propelling commercialization efforts, including the critical role of carbon credits, innovative approaches to credit stacking and project economics that balance environmental goals with financial viability.

Europe’s battery boom: 13 times more capacity by 2028 faces grid, regulatory roadblocks

CALGARY, Alberta (June 11, 2025) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a market overview of the opportunities and challenges related to developing battery projects in Europe.

The report focuses on identifying the defining policies, regulations and economic factors impacting the success of battery projects in the European Union’s (EU) evolving renewables energy landscape. While capacity is set to rise substantially over the next five years, creating attractive revenue-generating opportunities for investors, the EU must balance growing wind and solar capacity with regulatory hurdles and fragmented grid infrastructure. Additionally, the report contrasts the markedly different approaches taken in the EU — which favors long-term planning over agility — and the more market-driven and adaptable U.S. market.

“Europe’s battery storage market is on the cusp of rapid expansion, driven by surging wind and solar capacity,” said Donald Campbell, EIR analyst. “However, fragmented grid infrastructure and dense regulations pose challenges that investors must navigate carefully to unlock real long-term value.”

“The U.S. market is driven by adaptability and competitive dynamics, whereas the EU’s approach to battery storage prioritizes stability and long-term planning, offering an alternative blueprint,” said Alex Nevokshonoff, EIR senior analyst. “For investors, understanding these structural differences is crucial in assessing risk and opportunity in both regions.”

Key takeaways from the report:

EIR anticipates the EU’s installed battery capacity will increase up to 13 times by 2028 due to the rise of renewables, the electrification of transport and supportive policies.
Various regulatory bodies obstruct swift EU battery development, causing projected growth to fall short of what’s needed for grid stabilization. EIR finds that developments in some countries involve 50% more regulatory bodies than similar projects in Texas.
Revenue generation varies by jurisdiction. Ancillary services are vital for project viability in Germany, while capacity payments are the main revenue source in the U.K. Widening arbitrage spreads are a common theme.
European power markets exhibit strong revenue potential and solid fundamentals for battery development, but overly stringent regulation may hinder growth and reduce deployments.

co-located-battery-impact-on-solar-price-capture

View Report Here

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Enverus and Pexapark Press Release - Enverus Enhances Global Trading & Risk Platform with Pexapark’s Benchmark Renewables Pricing and Market Intelligence

Viper-Sitio Merger: A Wake-Up Call to Consolidate

The headline-grabbing $4.1 billion merger between Viper Energy and Sitio Royalties isn’t just another deal—it’s a signal flare for the entire minerals market.

Andrew Dittmar, principal analyst at Enverus Intelligence, calls it “a rare public mineral merger,” in his latest commentary and he’s right. These deals don’t happen often—because they can’t. There simply aren’t many targets left at this scale.

In fact, with this merger, we’ve gone from four to three public mineral companies of material size almost overnight. For public mineral companies, consolidation isn’t just strategic—it’s existential.

Why This Matters: No Inventory, No Yield

As we highlighted in a recent article on the New Frontier in Minerals and Royalties, publicly traded mineral companies face a challenge that echoes that of E&Ps: they must constantly build inventory to sustain the cash flows and dividends that attract investors to their tickers. Without new inventory, yield dries up—and in a yield-starved world, that’s a dealbreaker.

Private equity is facing a similar squeeze. These firms are flush with capital and looking for scalable deployment, but valuations have soared and options are limited. The institutional mid-market is being hunted by everyone—from private equity giants to family offices with 1031 exchange deadlines looming.

Family offices, in particular, are looking for durable real assets to hedge broader portfolios. For them, minerals are not just yield plays—they’re modern-day real estate alternatives, offering potential appreciation and downside protection in volatile markets.

A Seller’s Market for Scale

The reason public mineral companies like Viper and Sitio must consolidate is simple: there are fewer and fewer large-scale assets to acquire. Ground game aggregation, while still viable, doesn’t move the needle at the scale that public companies require to maintain or grow distributions.

Meanwhile, deal competition is fierce. As noted in the recent article on the New Frontier in Minerals and Royalties, “there are just not enough deals to chase compared to the money targeting them.” That imbalance is driving up valuations, especially in the Permian and other core basins.

Strategic M&A Is the Only Path Forward

With scale scarce and pressure mounting to maintain yields, M&A becomes the clearest—if not the only—path forward. But not all deals are created equal. That’s why it’s crucial to have real-time, expert insights on how these deals are priced, what inventory is actually worth, and which players are next in line.

Don’t Let Your Next Deal Pass You By

In a market where scale is scarce and timing is everything, understanding market trends, what’s left in the ground—and who’s positioned to capitalize—is critical. Enverus equips A&D teams, mineral buyers and strategic investors with unbiased, analyst-vetted insights and solutions that cut through the noise. From benchmarking operator inventory quality to identifying the next acquisition target, our inventory solutions and intelligence reports expedite deal screening and elevates your investment strategy.

Discover how Enverus Inventory Solutions transforms asset evaluation into a competitive advantage. Download the white paper for free.

Fill out the form to connect with our team to access detailed analyst review of industry trends. M&A deals and solutions that give you a competitive edge

EOG Resources $5.6B Bet on the Utica: What It Could Mean for the Wider M&A Market

The following blog is distilled in part from Enverus Intelligence® Research (EIR) publications.

After nearly a decade on the sidelines, EOG Resources has made a bold return to the M&A arena with its $5.6 billion acquisition of Encino Acquisition Partners (EAP). This landmark deal not only reshapes EOG’s portfolio but also sends ripples through the broader energy M&A landscape, signaling a shift in where, and how, operators are seeking growth. The M&A market was a hot topic at this year’s EVOLVE Conference, where we heard from industry experts discussing “Macro and Markets: The Next Act for Energy M&A.” To check out the rest of our recent EVOLVE Conference sessions click here.

Key takeaways:

EOG re-enters M&A with a $5.6B deal, its first major acquisition since 2016

Strengthens Utica position, adding scale and a third core asset

Signals broader consolidation in the Utica and scarcity of large private targets

Reflects shift to emerging plays as legacy basins mature

Continues private equity exits amid favorable gas market conditions

Strategic Leap into the Utica

The acquisition adds 675,000 net acres and boosts EOG’s production by an estimated 235,000 barrels of oil equivalent per day (boe/d) through the end of 2025. More importantly, it transforms EOG into a leading player in the Utica Shale, expanding its position to over 1.1 million net acres and more than two billion barrels of oil equivalent in undeveloped net resource.

This move marks EOG’s first major acquisition since its 2016 purchase of Yates Petroleum. Historically, EOG has favored organic growth, focusing on early-entry positions in core shale plays like the Delaware Basin and Eagle Ford. But as high-quality, undrilled inventory becomes increasingly scarce, even disciplined operators like EOG are being drawn back into the M&A fold.

Why Encino, and Why Now?

Encino assets offer a rare combination of scale, liquids-rich production and development upside. The Utica’s oil and liquids window, while less mature than the Permian or Eagle Ford, has emerged as one of the most promising new frontiers in U.S. shale. EOG had already been quietly building a position in the region through leasing and smaller bolt-ons, including a prior purchase from Encino. This acquisition consolidates that strategy and allows EOG to apply its operational expertise and cost efficiencies across a much larger footprint.

The deal is also financially compelling. EOG expects it to be immediately accretive to all per-share metrics, including a 10% boost to 2025 EBITDA and a 9% increase in both cash flow from operations and free cash flow. The company plans to fund the acquisition with $3.5 billion in debt and $2.1 billion in cash, avoiding shareholder dilution and maintaining its industry-leading balance sheet.

Implications for the Wider M&A Market

This transaction is significant not just for EOG, but for the entire upstream M&A landscape. According to EIR, it represents the first major consolidation move in the Utica, potentially setting the stage for further deals involving other operators like Ascent Resources, Gulfport Energy, and INRⁱⁱⁱ.

It also underscores a broader trend: the dwindling availability of large-scale, high-quality private inventory. With few comparable targets left (WildFire Energy in the Eagle Ford being one of the last), buyers may increasingly turn to public company acquisitions or explore emerging playsⁱⁱⁱ.

**Join our “No Half Baked Deals” webinar** to uncover how top operators are benchmarking undeveloped inventory, recreating reserve value, and navigating today’s high-stakes M&A landscape with precision.

Watch Now

Moreover, the deal reflects ongoing private equity exits from Appalachia. Encino’s backers, including the Canada Pension Plan Investment Board, are capitalizing on favorable gas market conditions and rising demand from LNG exports and data centers. This follows similar exits by Apex and Olympus and the IPO of Infinity Natural Resources^iv.

A Shift Toward Emerging Plays

As legacy basins like the Permian become more saturated, operators are being forced to look elsewhere. The Utica and Uinta Basin are gaining attention, despite offering significantly less scale. This shift presents both opportunities and challenges. Emerging plays offer lower entry costs and the potential for first-mover advantages, but they also come with greater geological uncertainty and infrastructure limitations. EOG’s move into the Utica suggests that the company sees enough upside to justify the risk, and that it believes its operational model can unlock value where others might struggle.

Looking Ahead

EOG’s move into the Utica reflects a broader shift in upstream strategy as Tier 1 inventory becomes scarce and operators look to emerging plays. Strategic M&A is becoming essential—not just for growth, but for staying competitive in a maturing shale landscape.

At our recent EVOLVE “The Next Act for Energy M&A” panel, experts highlighted that while oil deals have slowed due to price volatility, natural gas is gaining momentum. LNG demand, AI-driven power needs and shifting political sentiment are making gas-weighted assets (especially those in Appalachia and the Gulf Coast) more attractive. Public-to-public consolidation is expected to continue, with synergies and scale driving deal logic.

As shale enters its later innings, the next phase will be led by operators who can act decisively, unlock value and adapt to a changing energy market.

About Enverus Intelligence® Research

Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers and more than 40,000 suppliers. Learn more at Enverus.com.

References

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How Enverus PRISM® Drives Success in Siting Power Assets

At Enverus, we empower energy innovators with intelligent software that transforms complexity into clarity and decisions into results. Using our PRISM platform, we analyzed how our customers are outperforming the market in building successful power and renewables projects.

By comparing Enverus customers to the broader market, we uncovered clear trends in project success metrics such as queue performance, pricing and interconnection decisions and land buildability. These insights show how Enverus helps customers make better decisions, faster and with greater confidence.

Success in the Queue: Faster, Bigger, More Reliable Projects

Enverus customers are not just entering the interconnection queue—they’re getting through it and bringing projects online at an impressive rate.

23 GW of solar, wind and storage capacity brought online by Enverus customers in 2024—more than double the previous year.

44% of all U.S. power capacity added in 2024 came from Enverus clients.

28% of all U.S. solar and wind projects were delivered by Enverus customers.

266 renewable projects reached commercial operation in 2024 via Enverus customers.

Enverus-backed solar and wind projects had an average capacity 50.5% larger than those of non-customers.

Projects entering the queue in the last 5 years were 9x more likely to reach operation if developed by Enverus clients.

Smarter Siting: Better Pricing & Interconnection Decisions

With Enverus, customers don’t just pick a site, they pick the right site. Our Congestion Analytics and nodal pricing insights help developers identify high-value locations with strong interconnection potential and favorable market dynamics.

Enverus customer projects are sited at nodes with $9/MWh higher average solar-weighted LMPs over the past 5 years.

Planned projects by Enverus customers are targeting POIs with >500 MW of available injection capacity—ensuring grid readiness and reducing risk.

Land That Works: Sizable, Buildable, Usable

Finding land is easy. Finding buildable land well suited for renewables is where Enverus stands out. Our Parcels, Suitable Land Analytics and RatedPower tools help customers identify viable parcels, run custom buildability analyses, and design optimized solar and BESS layouts.

Solar projects brought online in 2025 by Enverus customers were built on land that was 20% more buildable than that used by non-customers.

The PRISM Advantage

What sets PRISM apart from other partners is our ability to integrate data, analytics, and decision-making tools into a single, powerful platform. From early-stage siting to commercial operation, our customers are equipped to:

Identify high-value opportunities

Reduce project risk

Accelerate timelines

Maximize returns

Whether you’re navigating the interconnection queue, evaluating pricing potential or selecting the perfect parcel, PRISM gives you the clarity and confidence to move forward.

About Enverus Power and Renewables

Enverus is the largest energy-only focused software company in the world. More than 6,000 businesses use our solutions, including more than 1,000 in electric power markets. Every day, 7,500+ users utilize our solutions to develop and design projects, manage the grid, trade power, and buy and sell assets.

Our team is 1,700 employees strong and includes 300+ people dedicated to power and renewables. These industry veterans and PhDs apply their real-life experience and expertise to ensuring that the data, software and intelligence solve the unique challenges facing the power industry.

Enverus Intelligence Research Press Release - Upstream M&A sails to $17 billion in 1Q25

How GenAI Will Change Your Oil and Gas Acreage Strategy

The following blog is distilled from Enverus Intelligence® Research (EIR) publications.

As the upstream oil and gas sector faces mounting pressure from rising costs and dwindling Tier 1 inventory, the need for smarter, faster and more efficient development strategies has never been greater.¹ AI has been thrown into this mix and is already proving to be a transformative force that’s reshaping how operators evaluate acreage, plan development and optimize production. GenAI was a hot topic at this year’s EVOLVE Conference, where we heard from industry experts discussing “AI in Asset Development: Inventory Analytics and Activity Prediction” and more sessions with expert panelists weighing in on this new chapter for the industry.

From real-time data analysis to rapid prototyping of development scenarios, AI is no longer a futuristic concept—it’s a competitive necessity for oil and gas. Here are four key ways AI is revolutionizing acreage strategy for upstream operators.

Accelerated Decision-Making
Data-Driven Optimization at Scale
Operational Efficiency and Automation
Strategic Focus and Cultural Shift

*AI in Action: From rapid prototyping to real-time optimization, artificial intelligence is transforming how upstream operators evaluate, develop and manage their acreage strategies.*

1. Accelerated Decision-Making

Traditionally, evaluating inventory and development scenarios could take weeks or even months. However, AI is collapsing that timeline to hours.

Generative AI tools now allow engineers and planners to move from idea to prototype in a single afternoon. Instead of waiting on developers or data scientists, teams can interact directly with large language models to test hypotheses, simulate outcomes and iterate quickly. According to EIR, Devon Energy has embraced this approach, enabling rapid prototyping across thousands of wells.² This acceleration means operators can evaluate more scenarios, faster, leading to better-informed decisions and a more agile response to market dynamics.

*This webinar demonstrates how asset development planning, powered by Enverus PRISM®, can move from high-level strategy to detailed, data-backed models in hours, not weeks.*

Watch Now

2. Data-Driven Optimization at Scale

AI is only as good as the data it is built on, and upstream operators are sitting on a goldmine. We are seeing operators that can feed machine learning models that optimize production in real time and by using AI to determine optimal flow conditions for each well. By integrating real-time sensor data with physics-based models and algorithms, they’re unlocking new levels of efficiency and performance.

This kind of optimization benefits you not only by squeezing more out of each well, but it also allows you to make smarter decisions across the entire asset development plan, from spacing and stacking to timing and completion design.

3. Operational Efficiency and Automation

AI is also driving gains in operational efficiency through automation. Early implementations of AI-powered control systems have shown 6–8% improvements in efficiency. Results like these can translate into millions in savings across large-scale operations.

According to EIR, one example comes from a sand plant in Texas, where integrating generative AI into the control system led to a 6% reduction in gas usage and an 8% increase in sand production. Similar efforts are underway to automate entire power plants, with the goal of reducing costs and increasing output.

For upstream operators, this means AI can help maximize the value of existing inventory while reducing the cost of supply, a critical advantage in today’s competitive landscape.⁴

4. Strategic Focus and Cultural Shift

While the technology is powerful, successful AI adoption requires more than just tools; in reality it requires a significant shift in your company’s culture.

Industry leaders agree that the most successful implementations come from companies that treat AI as a strategic priority. That means investing in high-quality, standardized data, while empowering employees to use AI tools and aligning leadership around clear, measurable goals.

Some companies are setting baseline expectations for all employees to understand and use generative AI. They’re also rewarding innovation and creating a culture where experimentation is encouraged, but within a framework that values methodical, scalable solutions.

In the end, embracing AI means adapting to a more exploratory and nondeterministic way of working. Unlike traditional tools, AI systems often behave like black boxes producing outputs that may not always be predictable. To navigate this, companies should be embedding human feedback loops and domain-specific knowledge into their AI systems, helping to improve accuracy and build trust in the results. To learn more about how oil and gas companies can integrate AI into their current workflows be sure to watch our “Synergistic Systems: Multi-Agent AI for Energy Application” session, from our recent EVOLVE Conference.

Final Thoughts

The energy sector may be slower to adopt AI than industries like media or finance, but the momentum is building. From optimizing well performance to automating control systems, AI is set to become a cornerstone of modern acreage strategy.

The key to success? Start small, focus on specific problems and build from a strong data foundation. As AI continues to evolve, the operators who embrace it early (and thoughtfully) will be best positioned to lead in the next era of energy development.

AI’s impact on the industry goes beyond its utility as a tool; it’s also strategic enabler. For upstream oil and gas companies, it offers a path to faster decisions, smarter development and more efficient operations.

The future of acreage strategy is here, and it’s intelligent.

References:

You must be a subscriber to Enverus Intelligence® | Research (EIR) products to view sources. To learn more, click here.

^[1] 2025. Enverus. North American Inventory: Increasing Cost of Supply
^[2] 2025. Enverus. Despite Slow Uptake, GenAI Promises to be a Disruptor in Energy.

Enverus Press Release - The Denver Post names Enverus a Top Workplace in Colorado

Navigating the M&A Landscape in 2025: Insights for Small to Mid-Sized Upstream Operators

The first quarter of 2025 has seen a remarkable surge in oil and gas mergers and acquisitions (M&A) within the upstream oil and gas sector, with transactions totaling $17 billion. This dynamic environment presents both challenges and opportunities for small to mid-sized operators. Read below to understand these trends and strategically position yourself to capitalize on this evolving market. The M&A market was a hot topic at this year’s EVOLVE Conference, where we heard from industry experts discussing “The Next Act for Energy M&A.”

Themes covered:

Current M&A activity
Challenges for small and mid-sized operators
Where are the opportunities?

Current M&A Activity

The upstream M&A market kicked off 2025 with a strong showing, reaching $17 billion in total deal value—marking the second-best first quarter since 2018. However, this surge was largely driven by a single player: Diamondback Energy. Its acquisition of Double Eagle IV and a related minerals dropdown to Viper Energy Partners accounted for nearly half of the quarter’s total deal value.

This concentration underscores a broader trend. While headline numbers are impressive, the market is becoming increasingly turbulent. Large public E&Ps are consolidating premium inventory in core regions like the Permian, where high-quality assets are scarce and valuations are steep. As a result, smaller operators face growing challenges in accessing top-tier acreage.

*In a rapidly evolving 2025 M&A landscape, small and mid-sized upstream operators must embrace strategic positioning, creative asset screening and emerging technologies to stay competitive.*

That said, opportunities still exist. Conventional plays remain active, with 57 deals totaling $6.25 billion, offering potential entry points for smaller players. Additionally, as buyers grow more selective and sellers hold firm on pricing, creative strategies—such as targeting less consolidated basins or leveraging undeveloped inventory—are becoming essential for navigating this evolving landscape.

Challenges for Small & Mid-Sized Operators

Valuation Challenges

Accurate valuation of remaining opportunities is crucial for small operators. Aligning valuations with current market trends and investor expectations is essential to secure favorable deals. Smaller deals are still occurring, particularly in conventional plays and areas outside major basins. However, the complexity of accurately valuing these opportunities can pose a significant challenge and lead to missed opportunities or submitting the wrong bid in this competitive environment.
Difficulty Monetizing Undeveloped Reserves

Another challenge lies in monetizing undeveloped reserves. As the market increasingly values these assets—sometimes approaching PV10 valuations—smaller operators may lack the tools or data to effectively demonstrate the potential of their inventory to buyers or investors.

This can result in undervaluation during negotiations or difficulty attracting capital, as buyers may be unwilling to pay a premium without clear, data-backed projections. In some cases, promising assets may remain unsold or be sold at a discount, limiting reinvestment potential.

There is also another factor influencing the monetization of undeveloped reserves that deserves consideration. The scarcity of tier-one inventory is also fueling a sense of urgency among buyers. This “FOMO” effect can lead to impulsive decisions and inflated valuations. For smaller operators, the antidote is discipline: conducting rigorous technical diligence, aligning internal expectations and setting clear investment criteria to avoid chasing hype.

Interested in learning more about identifying prime drilling locations, analyzing development styles as well as the ins and outs of spacing and completions data against your peers? Check out this free Enverus PRISM® tour!

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Decline in PE-Backed Funding

Access to capital is also tightening. Private equity funding for E&P ventures has dropped sharply, especially outside the Permian. This trend constrains smaller operators’ ability to scale or prepare assets for sale. This decline is driven by a combination of factors, including investor fatigue from underperforming past funds and consolidation trends that reduce the number of attractive standalone targets. As a result, smaller operators are finding it harder to secure the funding needed to scale operations or prepare assets for sale.

Opportunities for Small & Mid-Sized Operators

Use of Advanced Screening Tools

Leveraging advanced analytics platforms can help smaller operators identify undervalued assets, model undeveloped inventory, and benchmark against peers—enhancing their strategic positioning in the M&A landscape.

We recently had a webinar on this very topic! Check out the clip below to get a taste of how you can calculate average NPV per well for undeveloped inventory.

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Operational Efficiency as a Differentiator

Operational efficiency is a key differentiator. Companies that demonstrate disciplined capital deployment and strong production metrics—like Double Eagle—can position themselves as attractive acquisition targets or joint venture partners.

In fact, as panelists at our recent EVOLVE Conference touch on, capital is flowing only to projects with clear, contract-backed demand. Whether in traditional or emerging energy segments, what matters most is a clear path to near-term cash flow. Projects with committed customers are far more likely to secure funding and succeed post-acquisition.

Creative Asset Screening

Given the limited prime opportunities, small operators need to expand their asset screening scope. This may involve considering lower-tier unconventional assets or integrating energy transition technologies. By broadening their search criteria, operators can uncover hidden gems that larger companies might overlook.

Alternative Opportunities

While most core assets may be out of reach for companies with smaller budgets, there are alternative opportunities to capitalize on. Conventional plays remain active, suggesting potential for smaller operators to thrive in these areas. By strategically targeting these less competitive deals, operators can navigate the M&A landscape to find profitable opportunities.

Additionally, niche markets such as water handling and disposal assets, energy transition technologies, and seismic and data assets for AI applications offer promising avenues.

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Market Positioning and Regional Dynamics

Recent M&A activity has spanned a wide range of deal sizes—from $100 million to more than $1 billion—across multiple regions, highlighting the importance of geographic diversification. While core basins like the Permian remain highly competitive and increasingly consolidated, smaller operators can find strategic advantages by targeting less saturated regions such as the Uinta or Haynesville. These basins are gaining renewed interest due to rising gas prices and the growing impact of LNG exports, offering a more level playing field for non-majors.

By positioning themselves in these emerging areas and considering lower-tier unconventional assets, small operators can tap into overlooked opportunities. Integrating energy transition technologies and expanding asset screening criteria further enhance their ability to uncover value in a market where traditional core inventory is increasingly out of reach.

Conclusion

The M&A landscape in 2025 presents both challenges and opportunities for small to medium-sized upstream operators. While large companies continue to dominate core inventory, there are alternative opportunities in conventional plays and niche markets. Even in emerging sectors like CCUS and geothermal, investors are applying the same rigor they use in traditional oil and gas. Projects that resemble familiar subsurface models and offer contractual visibility are gaining traction—while those based on unproven demand or policy incentives alone are facing headwinds. By strategically positioning themselves, expanding their asset screening scope and leveraging emerging technologies, small operators can navigate the evolving market and capitalize on the dynamic M&A activity.

Industries

Research Highlights:

The Buyer/Supplier Slow Dance

The Life of an Oilfield Service Ticket

Your dad didn’t have digital invoicing. Lucky for you, times have changed.

Highlights:

Why This Matters: No Inventory, No Yield

A Seller’s Market for Scale

Strategic M&A Is the Only Path Forward

Don’t Let Your Next Deal Pass You By

Strategic Leap into the Utica

Why Encino, and Why Now?

Implications for the Wider M&A Market

A Shift Toward Emerging Plays

Looking Ahead

References

Success in the Queue: Faster, Bigger, More Reliable Projects

Smarter Siting: Better Pricing & Interconnection Decisions

Land That Works: Sizable, Buildable, Usable

About Enverus Power and Renewables

Final Thoughts

References:

Current M&A Activity

Challenges for Small & Mid-Sized Operators

Opportunities for Small & Mid-Sized Operators

Conclusion

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