Investment Banking & M&A Advisory
in Permian Basin
First Turn Capital brings deep oilfield services expertise to the Permian Basin, the most prolific oil-producing region in the United States. Our team understands the unique dynamics of energy services companies operating in the Midland and Delaware Basins, and we have the relationships to connect sellers with the right buyers.
Permian Basin at a Glance
The Permian Basin M&A Market
The Permian Basin represents the epicenter of American oil production and one of the most active M&A markets in the country. With over $100 billion in upstream transactions in 2024 alone, the ripple effects through the oilfield services sector have created both challenges and opportunities for business owners considering a transaction.
The Upstream Consolidation Wave
The Permian Basin experienced unprecedented upstream consolidation in 2023-2024. ExxonMobil's $60 billion acquisition of Pioneer Natural Resources, Diamondback Energy's $26 billion merger with Endeavor Energy Resources, and Occidental's $12 billion purchase of CrownRock fundamentally reshaped the basin's operator landscape. These mega-deals reduced the number of major customers for oilfield service companies while creating larger, more sophisticated buyers with multi-year budget visibility. For service company owners, this consolidation has mixed implications: fewer customers means more concentration risk, but those customers are more stable and predictable than the smaller independents they replaced.
Oilfield Services Consolidation Follows
Following the upstream consolidation, the oilfield services sector is experiencing its own wave of M&A activity. According to industry data, oilfield services dealmaking reached $19.7 billion in the first nine months of 2024, the highest level since 2018. The logic is straightforward: consolidated E&P operators need service providers that can match their scale. As one Dallas Fed survey respondent noted, there are simply too many vendors chasing too few customers. This dynamic has created attractive exit opportunities for service company owners with quality operations, stable customer relationships, and well-maintained equipment.
Private Equity Remains Active
Despite commodity price volatility, private equity continues to deploy capital in the Permian Basin. Firms like EnCap Investments, which sold four portfolio companies for $5.8 billion in 2023, have reloaded with new commitments. Double Eagle V launched in April 2025 with $2.5 billion in equity backing from EnCap and Apollo. While many PE firms have pivoted from upstream E&P to infrastructure and services, the capital available for quality acquisitions remains substantial. Regional and national PE firms are actively pursuing platform acquisitions in well services, cementing, midstream gathering, and other segments.
The Shift to Stability
The consolidation of Permian operators under major integrated companies brings a new dynamic to the market. ExxonMobil, Chevron, and Diamondback operate with multi-year capital programs rather than reactive drilling based on monthly commodity prices. This creates more stable demand for services and reduces the boom-bust volatility that has historically characterized the basin. For service company owners considering an exit, this stability is a selling point. Buyers recognize that contracted relationships with major operators provide more predictable cash flows than dependence on smaller, price-sensitive independents.
Key Market Highlights
- 50% of U.S. oil production comes from the Permian Basin
- $100+ billion in upstream M&A transactions in 2024 alone
- Oilfield services M&A hit $19.7 billion through Q3 2024, highest since 2018
- Major operators (Exxon, Diamondback, Occidental) provide stable, long-term demand
- Private equity actively pursuing services and infrastructure acquisitions
- Per capita income of $143,469 reflects the region's economic strength
Industries We Serve in Permian Basin
We have deep expertise in the industries that drive the Permian Basin economy.
The Permian Basin Buyer Landscape
The Permian Basin buyer landscape includes a diverse mix of strategic acquirers, private equity platforms, and infrastructure investors. Understanding who is buying helps sellers position their companies effectively and set realistic expectations.
Private Equity Platforms
PE-backed oilfield services platforms are the most active acquirers in the Permian. These buyers seek add-on acquisitions that expand their service offerings, geographic footprint, or customer relationships. They typically look for companies with $3M to $15M in EBITDA and pay multiples ranging from 4x to 7x depending on quality and growth potential.
Strategic Acquirers
Larger oilfield service companies seek acquisitions to gain capabilities, customers, or equipment. Strategic buyers often pay premium multiples for companies that fill specific gaps in their service lines or provide entry into new customer relationships.
Infrastructure Investors
Dedicated infrastructure funds from firms like Stonepeak and Global Infrastructure Partners pursue midstream and gathering assets with long-term contracted cash flows. These buyers value stability and are willing to pay premium multiples for quality infrastructure assets.
Regional Private Equity
Texas-based PE firms with energy sector focus actively pursue Permian opportunities. These buyers understand the local market dynamics and often move quickly on quality opportunities. They typically partner with experienced operators to run acquired businesses.
Family Offices
Wealthy families with oil and gas backgrounds have established family offices that pursue direct investments in operating companies. These buyers often value long-term relationships and operational continuity over aggressive financial engineering.
Recent Transaction Trends
Recent transaction activity in the Permian Basin reflects the post-consolidation market dynamics. Several patterns have emerged that inform how we advise clients on positioning, valuation expectations, and timing.
Oilfield services companies with relationships to major operators (Exxon, Diamondback, Occidental) command premium valuations due to customer quality and stability.
Well services and workover companies are seeing strong buyer interest as the basin shifts toward maintenance and production optimization.
Midstream and gathering assets with long-term contracts continue to attract infrastructure capital at healthy multiples.
Cementing and completion services companies are consolidating, with strategic acquirers seeking to build integrated platforms.
Equipment condition and fleet age are becoming more important valuation factors as buyers scrutinize capital expenditure requirements.
Earnout structures are common, particularly for businesses with customer concentration or commodity-sensitive revenue.
Permian Basin Market Insights
Industry profiles and transaction dynamics in the Permian Basin M&A market.
Market Context
Pressure pumping companies with $40M to $60M in revenue face strategic decisions as the upstream sector consolidates. Owners evaluate timing and positioning to maximize value in a changing customer landscape.
Key Considerations
The 2023-2024 upstream consolidation wave (ExxonMobil-Pioneer at $60B, Diamondback-Endeavor at $26B) reshaped the customer base. Fewer, larger customers create concentration risk but also operational stability. Equipment age and capital requirements are key buyer considerations.
Our Approach
We position companies to serve consolidated operators, targeting PE platforms seeking Permian exposure and strategic acquirers building integrated service offerings. Oilfield services M&A reached $19.7B in the first nine months of 2024, the highest level since 2018.
Market Data
Permian oilfield services companies trade at 4x to 7x EBITDA depending on customer quality, equipment condition, and margins. Earnout structures bridge valuation expectations where customer relationships are transitioning.
Market Context
Family-owned gathering and processing companies with long-term contracts seek liquidity while retaining upside exposure as Permian production grows. Partial exits allow participation in future value creation.
Key Considerations
Midstream owners often want liquidity without full exits. They need buyers who commit growth capital while respecting existing operations. Infrastructure assets require sophisticated buyers who understand contracted cash flows.
Our Approach
We target infrastructure funds and midstream strategics for these opportunities. Transactions like MPLX's $2.38B acquisition of Northwind Midstream demonstrate continued appetite for quality Permian infrastructure. We structure processes that optimize for current value and future participation.
Market Data
Midstream assets with long-term contracts and creditworthy counterparties command 8x to 12x EBITDA. Partial sale structures with equity rollover allow families to achieve liquidity while maintaining growth exposure.
Market Context
As the Permian matures, well services and production maintenance companies grow in importance. Companies with $20M to $35M in revenue represent attractive consolidation targets for PE platforms.
Key Considerations
Well services companies often have strong local relationships but may lack formal succession plans. Owner dependency creates transition challenges. Buyers focus on workforce retention and equipment condition.
Our Approach
We emphasize workforce quality and professionalization opportunities. Transactions like Ranger Energy's $90.5M acquisition of American Well Services demonstrate active consolidation. We target PE buyers who invest in management development.
Market Data
Quality well services companies trade at 5x to 7x EBITDA. Owner transition periods of 12 to 24 months are typical. Management equity participation ensures retention and alignment post-close.
Why Permian Basin Business Owners Choose First Turn
First Turn Capital brings specialized expertise to Permian Basin transactions. Our team understands the unique dynamics of energy services businesses and has the relationships to connect sellers with qualified buyers who value what they have built.
Energy Sector Expertise
Our team has deep experience in oilfield services, midstream, and energy infrastructure transactions. We understand commodity cycles, customer dynamics, equipment valuation, and the operational factors that drive value in energy services companies.
Buyer Relationships
We maintain active relationships with private equity firms, strategic acquirers, and family offices focused on the energy sector. When we bring a Permian deal to market, buyers respond because they know we represent quality companies.
Regional Presence
Headquartered in Oklahoma City, we are close to the Permian and deeply connected to the Southwest energy community. We are not a coastal firm unfamiliar with the market. We understand the basin and its dynamics.
FINRA/SIPC Registered
Through First Turn Securities, our registered broker-dealer, we operate under federal securities regulations that protect your interests. This regulatory oversight ensures ethical conduct and provides recourse if something goes wrong.
Middle-Market Focus
We specialize in transactions between $10M and $150M in enterprise value. This is where most Permian service companies fall, and we have the expertise to maximize value for owners in this range.
Success-Based Fees
We structure our engagement so we only succeed when you do. Our fee is tied to closing your transaction, which aligns our interests completely with yours.
Our Services in Permian Basin
Full-service investment banking for Permian Basin business owners.
Sell-Side M&A Advisory
Full-service representation for business owners selling their companies.
Investment Banking
Strategic advisory services for complex transactions and corporate finance.
Capital Raising
Debt and equity capital solutions for growth and recapitalizations.
Business Valuation
Understand what your business is worth with our AI-powered valuation tool.
Frequently Asked Questions: Permian Basin
Common questions from Permian Basin business owners about selling their company.
Contact Us in Permian Basin
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