Consolidation in the U.S. upstream sector slowed to a relative crawl in the first quarter after rallying late in 2020. But there have been signs of increased activity in April and potential catalysts for more deals as the year wears on, according to an Enverus analysis.

WTI prices

The oil and gas analytics company’s summary of 1Q2021 merger and acquisition (M&A) activity showed $3.4 billion in deal value announced, an 88% drop from the final quarter of 2020. There were a total of 25 deals announced in the quarter, down from 46 the prior period.

Globally, volume declined to 76 deals in the first quarter, compared with 107 in 4Q2020, Enverus’ tally shows.

First quarter Lower 48 activity focused mostly on production-heavy assets in legacy oil plays, as crude prices recovered and...