Oil pumpjacks in a field of tall golden grass

Serving Permian Basin, TX

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.

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First Turn Securities, Member FINRA/SIPC · Lower Middle Market Transactions

Permian Basin at a Glance

Sub-Basins
Midland and Delaware
Metro Hub
Midland-Odessa
Core Sectors
Oilfield services, midstream
Major Operators
Exxon, Diamondback, Oxy

The Permian Basin M&A Market

The Permian Basin is the center of American oil production and a major M&A market. After a wave of large upstream transactions, 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 saw a wave of upstream consolidation in 2023-2024. ExxonMobil's acquisition of Pioneer Natural Resources, Diamondback Energy's merger with Endeavor Energy Resources, and Occidental's purchase of CrownRock 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. 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 have raised new commitments after selling portfolio companies, and new platforms such as Double Eagle V have launched with 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

  • The largest oil-producing basin in the United States
  • A wave of upstream consolidation in 2023-2024 reshaped the operator base
  • Oilfield services consolidation following the upstream deals
  • Major operators (Exxon, Diamondback, Occidental) provide stable, long-term demand
  • Private equity actively pursuing services and infrastructure acquisitions

Industries We Serve in Permian Basin

We have deep expertise in the industries that drive the Permian Basin economy.

  • Oil pumpjacks in a field of tall golden grass

    Oilfield Services

    Pressure pumping, wireline, directional drilling, well services, and completion services

    The Permian Basin is home to hundreds of oilfield service companies ranging from single-crew operations to multi-basin platforms. Following the wave of upstream consolidation in 2023-2024, the service sector is experiencing its own consolidation cycle. Buyers are seeking scale to serve mega-producers like ExxonMobil, Diamondback, and Occidental.

    Oilfield services M&A
  • A processing unit with insulated pipe racks and yellow railings

    Midstream & Infrastructure

    Gathering systems, processing plants, pipelines, and compression services

    Midstream infrastructure in the Permian has attracted billions in investment as production continues to grow. Companies with long-term contracts and strategic assets draw the strongest buyer interest. The buildout of natural gas infrastructure for LNG export has created additional opportunities, with major players like MPLX investing in sour gas gathering and processing capacity.

    Oilfield services M&A
  • A service rig silhouetted against the sun between two pumpjacks

    Well Services & Workover

    Workover rigs, production maintenance, artificial lift, and rod pump services

    As the Permian matures, well services and production maintenance have become increasingly important. Companies focused on keeping existing wells producing are seeing steady demand even when drilling activity fluctuates. This segment has attracted significant private equity interest, with deals like Ranger Energy's acquisition of American Well Services demonstrating ongoing consolidation.

    Oilfield services M&A
  • A torch cutting square steel tubing on a fabrication rack

    Manufacturing & Fabrication

    Steel fabrication, equipment manufacturing, and industrial components

    The Permian has evolved beyond pure drilling activity into a regional manufacturing hub. Companies like Affinity Steel have opened major facilities in Midland-Odessa, and local manufacturers are expanding to serve the integrated needs of operators. ChampionX recently completed a multi-million dollar upgrade to its Odessa chemical manufacturing facility.

    Manufacturing M&A
  • Tower cranes over a construction site at sunset

    Construction & Industrial Services

    Pipeline construction, facility construction, and industrial maintenance

    The ongoing buildout of infrastructure and processing capacity creates consistent demand for construction and industrial service companies. Specialty contractors with energy sector expertise are particularly attractive to buyers looking to capitalize on the region's continued growth.

    Construction M&A
  • Semi trucks parked in rows, seen from above

    Transportation & Trucking

    Oilfield trucking, hauling, water transport, and logistics

    Moving equipment, water, sand, and produced fluids requires a massive trucking and logistics infrastructure. Companies with established customer relationships and well-maintained fleets are attractive acquisition targets, particularly for private equity firms building regional platforms.

    Transportation M&A
View All Industries

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 frequent acquirers in the Permian. These buyers seek add-on acquisitions that expand their service offerings, geographic footprint, or customer relationships, and they weigh quality and growth potential heavily in what they pay.

  • Strategic Acquirers

    Larger oilfield service companies seek acquisitions to gain capabilities, customers, or equipment. Strategic buyers look 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 pay close attention to contract terms and counterparty quality.

  • 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) draw more buyer interest because of 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 Profile

Pressure Pumping and Completion Services Profile

Market Context
Pressure pumping companies face strategic decisions as the upstream sector consolidates. Owners weigh timing and positioning in a changing customer landscape.
Key Considerations
The 2023-2024 upstream consolidation wave (ExxonMobil-Pioneer, Diamondback-Endeavor) 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.
Market Data
Customer quality, equipment condition, and margins drive most of the difference in value between Permian oilfield services companies. Earnout structures bridge valuation expectations where customer relationships are transitioning.
  • Value drivers: customers, equipment, margins
  • Earnouts Common

Market Profile

Midstream and Infrastructure Profile

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 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 draw infrastructure and strategic buyers alike. Partial sale structures with equity rollover allow families to achieve liquidity while maintaining growth exposure.
  • Value drivers: contracts, counterparties
  • Rollover Structures Common

Market Profile

Well Services and Production Maintenance Profile

Market Context
As the Permian matures, well services and production maintenance companies grow in importance. Established well services companies 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 acquisition of American Well Services demonstrate active consolidation. We target PE buyers who invest in management development.
Market Data
Workforce quality and safety record carry the most weight for well services buyers. Owner transition periods of 12 to 24 months are typical. Management equity participation supports retention and alignment after closing.
  • Value drivers: workforce, safety
  • Transition: 12-24 Months

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 regulation and FINRA oversight. That oversight includes conduct rules, disclosure requirements, and a formal way to raise a complaint.

  • Middle-Market Focus

    We specialize in lower middle market transactions. This is where most Permian service companies fall, and we know how buyers evaluate businesses in this range.

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.

Does First Turn Capital have experience with Permian Basin transactions?

Yes, our team has significant experience with oilfield services and energy infrastructure transactions in the Permian Basin. We understand the unique dynamics of the market, from customer consolidation impacts to equipment valuation to workforce considerations. Our headquarters in Oklahoma City keeps us close to the Permian and connected to the buyer community active in the basin.

What size oilfield services companies do you work with?

We focus on lower middle market companies: businesses substantial enough to attract institutional buyers, but below the range most bulge-bracket banks serve. For Permian Basin service companies, the right fit depends as much on margins and asset intensity as on headline revenue.

How has the upstream consolidation affected oilfield services M&A?

The wave of upstream consolidation in 2023-2024 has had significant effects on the oilfield services M&A market. On one hand, it reduced the number of potential customers, creating more concentration. On the other hand, the remaining customers are larger, more stable, and operate with multi-year capital programs. For service companies with relationships to major operators, this stability is a selling point. The consolidation has also accelerated M&A activity among service companies seeking scale to serve consolidated operators.

How are Permian oilfield services companies valued?

Value for a Permian oilfield services company depends on several factors: customer quality and concentration, equipment condition and age, workforce stability, service line margins, and growth potential. Companies with contracted relationships to major operators and well-maintained equipment generally draw the strongest offers. Midstream and infrastructure assets with long-term contracts are valued on different terms, with contract length and counterparty quality carrying the most weight.

Is now a good time to sell an oilfield services company in the Permian?

The current market presents both opportunities and considerations for sellers. On the positive side, oilfield services M&A activity is at its highest level since 2018, private equity has significant capital to deploy, and the stability provided by consolidated operators is attractive to buyers. On the cautionary side, commodity price volatility remains a factor, and buyers are scrutinizing equipment condition and customer concentration carefully. For companies with quality operations and stable customer relationships, the current environment offers attractive exit opportunities.

How long does it take to sell an oilfield services company?

A typical M&A transaction for a Permian Basin oilfield services company takes 6 to 12 months from engagement to closing. The timeline depends on factors including deal complexity, buyer type, and how prepared the company is for due diligence. Well-prepared companies with clean financials and organized operations can often close faster. We help clients prepare for the process to minimize delays.

What do buyers look for in Permian Basin service companies?

Buyers evaluating Permian oilfield services companies focus on several key factors: customer quality and relationship stability (especially relationships with major operators), equipment condition and remaining useful life, workforce experience and retention, margins relative to peers, safety record and regulatory compliance, and growth potential. Companies that do well on these measures attract more buyer interest and stronger offers.

Contact Us in Permian Basin

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Permian Basin, TX
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Also Serving Nearby Areas

Midland, TX; Odessa, TX; Andrews, TX; Big Spring, TX; Pecos, TX; Monahans, TX; Kermit, TX; Hobbs, NM

Ready to Explore Your Options?

Whether you're ready to sell or just exploring your options, our team is here to provide confidential, expert guidance for your Permian Basin business.

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