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. 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.

PE Hub rounded up eight deals showing PE’s growing appetite. Sunoco agreed to acquire Court Square-backed Offen Petroleum for $600 million. San Mateo Midstream acquired En Cap Flatrock Midstream's Cardinal Midstream for $752 million. Matador Resources agreed to buy En Cap Investments' Paloma Permian for nearly $1.3 billion.

Warburg Pincus and Kayne Anderson sold Wild Fire Energy to Magnolia Oil & Gas for over $4 billion. Morgan Stanley Infrastructure exited Brazos Delaware II to Western Midstream Partners for $1.6 billion. Post Oak Energy Capital sold Switchgrass E&P and exited Up Curve Energy assets. Carlyle and Diversified Energy acquired Anadarko Basin assets from Camino Natural Resources for $1.2 billion.

With rising fuel prices and slower clean energy rollout, PE Hub expects more oil and gas deals.