PE’s renewed interest in oil and gas: 8 deals

Private equity investment in US oil and gas turned a corner around 2022, as Russia’s invasion of Ukraine stoked geopolitical tensions and threatened to squeeze the global energy supply chain, reversing several years of decline.

Until then, many investors had been retreating from traditional energy amid pressure to cut carbon footprints and address climate change. Geopolitical tensions have only intensified with the Middle East crisis, and factors such as persistent inflation, rising fuel prices and a slower-than-expected rollout of clean energy have opened the door to renewed investment in traditional energy, be it drilling or supporting services.

Starting from the most recent, PE Hub rounded up eight deals that show PE’s growing appetite for oil and gas.

1. Sunoco to acquire Offen Petroleum, a Court Square-backed oil transporter, for $600 million

In August, Sunoco announced a definitive agreement to acquire Offen Petroleum, a Court Square portfolio company, in an all-cash transaction valued at $600 million. The deal is expected to close in Q4 2026.

Offen operates a fuel distribution network that delivers approximately 2.5 billion gallons annually, serving approximately 7,000 customers and over 800 retail stations across the Midwest, Mountain West and Southwest regions.

The expanded geographic footprint complements Sunoco’s existing fuel distribution operations and creates additional opportunities for organic growth and bolt-on acquisitions.

Court Square acquired Offen from Lariat Partners in 2019.

2. San Mateo Midstream acquires EnCap-backed Cardinal Midstream for $752 million

San Mateo Midstream, a joint venture between Matador Resources Company and Five Point Infrastructure, in August closed a deal to acquire Cardinal Midstream Partners, a portfolio company of EnCap Flatrock Midstream, for $752 million. The deal was initially announced in June.

Based in Dallas, Cardinal is a midstream energy company that acquires, develops and operates infrastructure for the oil and gas sector.

San Mateo provides natural gas gathering, treating and processing; produced water gathering and disposal; and oil gathering and transportation services to Matador and third-party customers in the Delaware Basin in Southeast New Mexico and West Texas.

3. Matador Resources Company to acquire Paloma Permian for nearly $1.3 billion

Matador Resources Company, a Dallas-based energy company, last month agreed to acquire Paloma Permian, a portfolio company of EnCap Investments, for around $1.3 billion. The deal is expected to close in the fourth quarter of 2026.

Headquartered in Houston, Paloma is an oil and gas exploration and production company. The acquisition includes certain proved undeveloped acreage and oil and natural gas producing properties located in Southeast New Mexico.

4. Warburg Pincus and Kayne Anderson to sell WildFire Energy for over $4 billion

In July, Kayne Anderson and Warburg Pincus agreed to sell WildFire Energy, a Houston-based energy company, to Magnolia Oil & Gas Corporation for around $4.06 billion. The deal is expected to close in the third quarter of 2026.

WildFire is focused on the acquisition, development and optimization of oil and gas assets in the Austin Chalk, Eagle Ford and Woodbine formations of South Texas.

Warburg Pincus, Kayne Anderson and the WildFire management team partnered together in 2019 to form the company.

5. Morgan Stanley Infrastructure exits Brazos Delaware II for $1.6 billion

In June, Western Midstream Partners acquired Brazos Delaware II, a portfolio company of Morgan Stanley Infrastructure, in a $1.6 billion transaction.

The purchase price of $1.6 billion represents an 8x EBITDA multiple based on projected 2027 EBITDA, declining to 7.5x with the commercialization of available processing capacity and identified synergies.

Brazos is one of the largest private midstream gathering and processing platforms in the Delaware Basin, with reserves spanning Reeves, Ward, Pecos, Winkler, Culberson and Loving counties of West Texas and eastern New Mexico. Brazos’s assets include 900 miles of pipeline and 460 million cubic feet per day of nameplate natural gas processing capacity at the Comanche processing complex.

6. Post Oak sells Switchgrass E&P

Post Oak Energy Capital sold Switchgrass E&P in June, a Texas-based oil and gas operator.

Switchgrass is focused on upstream assets in the Mid-Continent region.

Post Oak invested in Switchgrass E&P in 2025.

7. Carlyle and Diversified Energy acquire Anadarko Basin oil assets from Camino for $1.2 billion

In May, Carlyle and Diversified Energy acquired Anadarko Basin oil assets from Camino Natural Resources for approximately $1.2 billion.

The deal provides an additional 100 undeveloped inventory locations in an active development area, with Diversified owning in excess of 450 locations in Oklahoma. Camino will retain its ownership of the Chickasha development area.

Diversified is a gas and oil production company operating in the Appalachian Basin and central region in the US.

8. Post Oak exits UpCurve Energy assets

Post Oak Energy Capital exited UpCurve Energy Partners’ assets in May. The transaction includes oil and gas assets located in the Southern Delaware Basin in West Texas.

Based in Houston, UpCurve is focused on developing assets in the Permian Basin. UpCurve Energy was formed in 2015 with an equity commitment of $100 million from Post Oak Energy Capital.

With rising fuel prices and a slower-than-expected rollout of clean energy, PE hub expects to see more deals in the oil and gas sector.