Oil and Gas PE Deals Plummet Amid War and Price Shocks

Private equity investors significantly reduced their participation in oil and gas deals during the second quarter of this year, as geopolitical uncertainty and volatile commodity prices made it challenging to underwrite new investments. According to PitchBook's Q2 2026 Oil & Gas report, oil and gas private equity deal count fell by 60% quarter over quarter to just 16 transactions, with a deal value drop of 65.4% to $3.4 billion.

The decline in deal activity was particularly notable in new platform investments, with only three out of the 16 second-quarter transactions being new platform buyouts. The remainder consisted of secondary buyouts, tuck-ins, and carveouts. This suggests that private equity firms were more focused on managing existing portfolios than putting fresh capital to work in a market where oil and gas prices had become increasingly difficult to forecast.

The war in Iran and ongoing conflict in Ukraine contributed to sharp commodity price swings, prompting investors to reassess the price scenarios they were willing to use in underwriting new transactions. Strategic buyers, however, remained active in the broader market, with Shell PLC acquiring ARC Resources for $16.4 billion.