Iran War Spurs a Surge in Stock Sales From US Shale Companies

Oil drilling rigs near Stanton, Texas. Photographer: Justin Hamel/Bloomberg

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Stock sales by US-listed oil and gas producers are making March the sector’s busiest month in more than six years as the war in Iran whips up volatility and stalls capital-raising activity from other corners of the market.

With West Texas Intermediate crude prices at times topping $100 a barrel, investors have poured cash into shares of energy producers. In turn, oil and gas firms have sold $3.5 billion via stock offerings so far in March, according to data compiled by Bloomberg.

Even with another two weeks left in the month, March’s haul from eight separate exploration and production deals ranks as the sector’s biggest haul since September 2019, the data show. Some of their biggest shareholders are also cashing out.

Source: Bloomberg

Blockages in the Strait of Hormuz have disrupted global oil supplies, while missile and drone strikes have damaged other regional energy infrastructure. The S&P 500 Energy Index is up around 29% so far this year, outperforming all other major sectors of the market in 2026.

“We’ve been seeing investors rotate capital between sectors rather than move out of the market as a whole,” said Rob Stowe, the head of Americas ECM for Barclays Plc. “If you are rotating money in response to the events in Iran, the natural places to go are energy and defense.”

March is historically light on new listings as companies are often completing their annual audits, but this month’s wild market swings, software disruption and private credit concerns have further curbed broader equity capital markets activity, helping to limit March’s initial public offering count to just three. But E&P companies are keeping the secondary market moving.

Last week’s $1.9 billion sale of shares in Permian Basin oil producer Diamondback Energy Inc. by the heir of tycoon Autry Stephens, accounts for much of the activity. A week earlier, sellers including Diamondback itself offloaded nearly $800 million of shares in Permian Basin-focused oil and natural gas royalty owner Viper Energy Inc.

BKV Corp., Kosmos Energy Ltd. and Northern Oil & Gas Inc. all tapped investors for fresh capital last week, albeit for smaller sums.

Kosmos and Northern Oil are raising money to repay debt while executives consider whether the sudden market shifts justify investing to expand production.

“I don’t expect companies to make big investment decisions on a few days’ move in oil prices, but raising additional capital will give them flexibility for the future,” Stowe said.

Further complicating decision-making and contributing to meme-like oil price volatility is significant uncertainty about the duration of the conflict and related shipping disruptions, as well as the speed with which any damaged Middle East energy infrastructure can be brought back online and the impact of strategic oil reserve releases to stem rising energy prices.

Stowe expects more stock sales from the E&P sector, assuming the backdrop for energy stocks remains strong.