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Bailey McCann, Opalesque New York:

US oil and gas producers are facing a number of headwinds. OPEC announced last week it would release more supply onto an already depressed market - a move which will keep prices low. US producers have also announced that they would cut the number of oil and natural gas rigs operating for a fifth week in a row to the lowest since November 2021, according to data from Baker Hughes.

Exploration and production companies in the US are also planning to cut capex by around 3% in 2025, according to TD Cowen, a financial firm that tracks oil and gas company data.

Taken together, these data points show an industry that is pulling back from production. Analysts suggest that US oil and gas producers are anticipating an overall production decline this year and possibly next if pricing remains at current levels. On Friday, the WTI benchmark was trading down $0.66 per barrel (-1.08%) on the day at $60.28, a decline of more than $1 per barrel from last Friday's price, according to data from oilprice.com. If prices drop further, producers could have a hard time maintaining break even.

These challenges could create a tough market for private equity sellers in oil and gas. So far this year, sellers have been doing a brisk business. According to data from S&P Global Market Intelligence, exits in fossil fuels are on the rise and are about to surpass the transaction value reached in 2024. Private equity exits in the oil and gas industry amoun......................

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