Plenty of private producers are primed to sell in 2027, eager to test a ready market for assets that are full of high-yield potential or developed, mature and cash-flowing.

But not everyone will get in on the action. Those with assets that are not so promising will be relegated to the sidelines until their portfolios are scalable or developed.

Buyers are demonstrating a healthy appetite for acquisitions. E&Ps are hunting for high-quality acreage with a Tier I profile. In July, Matador Resources announced its $1.3 billion cash offer to acquire EnCap-backed Paloma Permian. The deal closed Oct. 1, adding 16,235 net undeveloped acres in the Delaware Basin to Matador’s inventory.

Others are looking for immediately accretive, developed assets, and they’re partnering with investors on asset-backed securitization (ABS) deals to access cash-flowing production immediately.

Private producers whose assets are in the middle may be sidelined until—and unless—they can scale up their footprints, a challenge of epic proportions given the scarcity of available Tier I inventory. Their other option is to develop their assets into high-yield, cash-flowing production, according to a growing consensus.

But as the end of 2026 draws near, insiders say more than top inventory scarcity and asset development are driving M&A now and into the new year.

The war in the Middle East has shut down pivotal export channels for the first time in decades, adding a new layer of uncertainty to price forecasting and global supply-and-demand dynamics that may linger for years.