Oil and gas PE deals tumble as new platform buyouts dry up

Oil and gas private equity (PE) deals witnessed a steep decline in Q2 2026, with a 60% quarter-over-quarter drop to just 16 deals worth $3.4 billion, according to PitchBook's report. The majority of these transactions were secondary buyouts, tuck-ins, or carveouts, as investors faced price volatility and uncertainty. Only three new platform buyouts were made during the quarter, with CPP Investments leading the pack by investing $1.2 billion in Texas-based gas and LNG platform Caturus.

Paris-based Antin Infrastructure Partners secured the third-largest deal at $164.5 million by acquiring Texas-based Sapphire Gas Solutions. M&A activity totaled $39 billion, marking a 20.3% quarter-over-quarter drop. However, the 2026 deal value is projected to be 10% ahead of 2025 on an annualized basis, indicating steady consolidation.

The largest M&A transactions in Q2 were all headed by Canadian firms headquartered in Calgary, Alberta. The conflict in the Red Sea and the Bab el-Mandeb Strait, along with the closure of the Strait of Hormuz, have caused a supply shock, leading to a 163 million barrel drop in OECD government oil inventories to their lowest level since 1990.

EU assets saw few deals, with only Motortech, Enhanced Drilling, and ISAB experiencing small exits. Shell's acquisition of ARC Resources added 1.5 million net acres adjacent to its Groundbirch asset, which supplies LNG Canada. Canadian Prime Minister Mark Carney discussed Canada's potential contribution of LNG and hydrogen to Europe's energy security, highlighting new port infrastructure in the north and on the east coast.