M&A activity in the energy sector saw mixed results as Diversified Energy acquired Birch Permian Holdings for $1.8 billion, while BP abandoned talks for Devon Energy's Eagle Ford assets over a valuation gap. Geopolitical friction escalated as Donald Trump rejected an Iranian proposal to temporarily reopen the Strait of Hormuz in exchange for sanctions relief. Supply chains also shifted with a major eight-year lithium deal alongside Crusoe canceling its $1.25 billion turbine order.
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BP Explores Expanding US Shale Footprint Following Devon Deal Talks
BP walked away from talks to acquire Devon Energy's South Texas Eagle Ford after entering the data room, leaving the 90,000 net-acre position without a confirmed buyer. TPH Research valued the package at approximately $4.5 billion, while Reuters sources placed the expected range between $3.5 billion and $4 billion. The $500 million spread between buyer caution and seller expectations widened enough to stall final negotiations amid elevated prices driven by the US conflict with Iran. Devon is divesting the Eagle Ford acreage alongside its Powder River Basin holdings following its $58 billion all-stock with Coterra Energy in the first quarter of 2026. The combined company produces over 1.6 million barrels of oil equivalent per day. For BP, entering the data room marked a tactical shift under CEO Meg O'Neill, who took the helm in April and has redirected the company toward traditional oil and gas. The move followed a second-quarter financial recovery in which BP posted $5.7 billion in underlying replacement cost profit, more than double its result from a year earlier. BPX Energy, the company's US shale unit, produced approximately 545,000 boepd in the second quarter, including roughly 205,000 boepd from its existing Eagle Ford footprint, and maintains a target of over 650,000 boepd by 2030. Despite that operational alignment, BP opted to preserve discipline rather than bridge the gap. BP shares fell 3.4% on Friday following the reports, while Devon shares closed 1.8% higher on Thursday.
Michigan Judge Dismisses State's Antitrust Lawsuit Against Major Oil Companies
A federal court dismissed Michigan's lawsuit against four major oil companies and their primary trade association on September 22. U.S. District Judge Jane Beckering ruled that the state lacked antitrust standing to sue under federal law because the link between the alleged 1979 conspiracy and current energy prices was too remote. Michigan Attorney General Dana Nessel had filed the 126-page action in January, alleging that BP, Chevron, Exxon, Shell, and the American Petroleum Institute coordinated to suppress , electric vehicles, and charging infrastructure to protect fossil fuels. The state argued this collusion left consumers paying artificially high prices for household energy and transport. Judge Beckering found that while energy overcharges represented a plausible antitrust injury, the causal chain spanning nearly five decades was too attenuated to prove proximate cause. The court also held that effects such as climate-related damage, higher property insurance premiums, and public mitigation spending fell outside the scope of antitrust law. The Sherman Act claim was dismissed with prejudice, while a separate claim under the Michigan Antitrust Reform Act was dismissed without prejudice, leaving the state free to refile it in a Michigan state court.
Trump Posts Map Calling Strait of Hormuz 'Trump Strait' After Iran Reopening Offer
Donald Trump posted a map on social media labeling the Strait of Hormuz the "Trump Strait" following a new Iranian proposal to fully reopen the vital waterway, Fortune reported. Iran offered to end fighting and reopen the strait in seven days if the United States ends its naval blockade of Iranian ports, releases frozen , and waives sanctions on oil sales. The indirect talks mark the first engagement between the two nations since a previous agreement collapsed in June after seven months of conflict. Opening the strait would ease pressure on global energy markets and the U.S. military, which currently guides commercial vessels through the risk-laden corridor. Tehran's push for a swift deal aims to alleviate mounting economic distress as soars and its currency hits record lows. The White House has not yet elaborated on the social media post, while Secretary of State Marco Rubio described recent indirect discussions mediated through Qatar as positive.
Crusoe Cancels $1.25 Billion AI Data Center Turbine Plan With Boom
techcrunch.com reports that Crusoe has abandoned a $1.25 billion plan to purchase stationary power plant turbines from Boom Supersonic for its . Crusoe had agreed to buy 29 of Boom's 42-megawatt Superpower turbines, with initial deliveries originally scheduled to begin in 2027. Boom Supersonic CEO Blake Scholl announced the cancellation in a post on X, stating that turbines are no longer part of Crusoe's near-term primary power mix at its Abilene site and elsewhere. Crusoe recently raised $3.9 billion and is building a massive campus in Abilene, Texas, that supplies computing power to OpenAI and Oracle, alongside a 900-megawatt data center for Microsoft that will use on-site gas turbines. Boom Supersonic, which is developing the Overture supersonic passenger jet, launched its stationary power plant business last year and raised $300 million largely to commercialize the effort. Despite losing its launch customer, Boom stated it will deliver about 250 megawatts of Superpower turbines to other sites next year and is targeting 1 gigawatt in 2028.
Trump Reportedly Rejects Iran's Seven-Day Strait of Hormuz Peace Deal
Donald Trump has reportedly rejected a diplomatic proposal from Iran to reopen the Strait of Hormuz and end hostilities within a seven-day window, according to The Guardian. The initiative, transmitted through Qatari mediators at the United Nations General Assembly and detailed by Iranian Foreign Minister Abbas Araghchi, was conditioned on the US lifting its naval blockade of Iranian ports, waiving sanctions on oil sales, and observing a ceasefire including Lebanon. In exchange, Tehran offered to resume stalled talks on its nuclear program. US officials cited by the Wall Street Journal indicated skepticism, with Trump telling staff he anticipates a renewed bombing campaign following the November US midterm elections. The seven-month conflict, which began with US and Israeli attacks on February 28, has disrupted vital oil flows through the shipping lane and fueled global through high energy prices. Araghchi stated that the initial steps of the proposal would take four to five days, with the strait opening on the sixth day and talks beginning on the seventh day. Meanwhile, Iranian President Masoud Pezeshkian maintained in a CBS interview that Tehran is ready for nuclear talks but rejects coercion. Regional spillover continues alongside the diplomatic friction, as the Saudi-led coalition intercepted two Houthi drones launched toward Riyadh, and pipeline attacks have temporarily removed Saudi oil from the market. Previous diplomatic efforts have repeatedly failed to halt the conflict.
Bridge Green and Hartree Sign $1 Billion Lithium Carbonate Supply Agreement
Bridge Green Upcycle and Hartree Partners signed an eight-year commercial agreement for the purchase and marketing of recycled lithium carbonate valued between $500 million and $1 billion. Under the terms, Hartree receives exclusive rights to market approximately 10,000 tonnes per annum of lithium carbonate across all grades from Bridge Green facilities. The agreement includes an to renew for an additional seven years. Alongside the supply arrangement, Hartree made an investment in Bridge Green as part of the company bridge financing round. Initial volumes of lithium carbonate for Hartree are anticipated in 2028. Bridge Green earlier commissioned its Circularity Center India with a nameplate capacity of around 7,200 tonnes per annum of lithium-ion battery input, and upcoming Series A funding is expected to finance integrated refining facilities in India and the US.
Diversified Energy Acquires Birch Resources for $1.8 Billion
Energy agreed to acquire Permian Basin oil and gas producer Birch Permian Holdings for $1.8 billion, marking the largest transaction in the buyer's 25-year history. The purchase adds approximately 46,000 net mineral acres and roughly 500 operated wells, backed by current net production of about 68,000 barrels of oil equivalent per day. Funding for the deal relies primarily on a $1.5 billion -backed securitization arranged with Carlyle, supplemented by existing credit facilities. The expands Diversified's production by approximately 35% and adjusted by roughly 55% while incorporating gathering, processing, and water infrastructure. The transaction follows the buyer's 2025 purchase of Maverick Natural Resources and broadens its existing investment framework with Carlyle to allow up to $10 billion in potential future acquisitions, up from $2 billion previously. Birch was formed from assets restructured under Breitburn Energy Partners' 2018 Chapter 11 and was backed by Elliott Investment Management. The transaction is expected to close during the fourth quarter of 2026, subject to customary closing conditions.
Heavy asset deals and long-term lithium contracts show selective capital deployment, even as tech-energy partnerships falter. Unresolved tensions around the Strait of Hormuz and potential post-election strikes leave oil markets vulnerable to sudden global supply shocks.
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