*

Dealmaking fell 28% quarter-over-quarter, totaling $9.7

bln -

Enverus

*

Crude prices in mid-$60s challenge sellers - analyst

*

Crescent Energy's ( CRGY ) $3 bln deal leads Q3 transactions -

Enverus

(Adds detail from paragraph 7 onwards)

By Georgina McCartney

HOUSTON, Oct 22 (Reuters) - Dealmaking in the U.S.

upstream oil and gas sector slumped nearly 30% during the third

quarter as persistently low oil prices kept buyers on the

sidelines, analytics firm Enverus said on Wednesday.

Merger and acquisition activity has now fallen for three

straight quarters, according to Enverus, marking a sharp

departure from a period of blockbuster deal activity that

included the $60 billion combination of Exxon Mobil ( XOM ) and

Pioneer Natural Resources in 2023 and Chevron's ( CVX ) $53

billion purchase of rival Hess that closed this year.

Dealmaking in 2023 totaled a record $192 billion, then

slipped to $105 billion in 2024, according to Enverus.

U.S. crude futures averaged around $65 a barrel

during the July through September period, just at the level many

producers say they need to profitably drill, but $10 lower than

the same quarter last year.

Deals totaling $9.7 billion were disclosed in the quarter ended

September 30, Enverus said, marking a 28% drop

quarter-over-quarter.

"Crude prices in the mid-$60s or worse have made it tough

for sellers, especially private equity firms with oil-weighted

assets," said Andrew Dittmar, principal analyst at Enverus

Intelligence Research.

"Most remaining shale M&A opportunities need stronger

pricing to justify public companies paying for the undeveloped

locations," he added.

Producer

Crescent Energy ( CRGY )

bought smaller rival Vital Energy ( VTLE ) in an all-stock

transaction valued at $3 billion in August, taking the lion's

share of deals done in the third quarter, according to Enverus.

That deal gave Crescent a significant foothold in the

Permian shale basin of Texas and New Mexico.

NATURAL GAS EMERGES AS BRIGHT SPOT

While assets focused on oil production felt pressure during

the quarter, natural gas emerged as a bright spot, driven by

rising demand for liquefied natural gas exports and

energy-hungry data centers.

Privately owned Stone Ridge Holdings made the

second-largest transaction in the last quarter, with its $1.3

billion purchase of Oklahoma energy assets from U.S. producer

ConocoPhillips ( COP )