Private equity oil, gas and coal deals hit $14.7B, topping 2025 total

Global private equity and venture capital investment in oil, gas and coal surged to $14.7 billion by the end of July, driven by Energy Capital Partners LLC and Kohlberg Kravis Roberts & Co. LP's $9.73 billion acquisition of DCC Energy PLC, according to S&P Global Market Intelligence data.

The cumulative transaction value blew past the $8.24 billion recorded for full-year 2025.

Even excluding the outsized deal, total transaction value by the end of July would be almost $5 billion, exceeding the $2.3 billion recorded in the same period last year.

Higher commodity prices, energy security concerns, and rising power demand driven by data centers and AI infrastructure are spurring investment in traditional energy assets, said David Sewell, co-head of law firm Akin Gump's corporate practice and private equity partner.

"These fundamentals, combined with strong cash flow generation and a policy focus on energy security, have brought private capital back to the table in a meaningful way," Sewell said.

Europe leads

Europe accounted for 68.4% of total deal value with $10.1 billion in investments, leading all regions. The US and Canada followed with $4.65 billion. Asia-Pacific had no announced investments in the sector.

Europe's energy security needs are a primary driver of deals in the region, according to Oliver Holtkemper, a partner in Roland Berger GmbH's investor support and industrial practices. Compelling investments in the region include LNG, storage, terminals and midstream infrastructure, he added.

The European Union has implemented a plan to ensure that it is free of Russian gas imports by November 2027 at the latest. As part of its energy security measures, the EU is prioritizing the diversification of energy supplies, expanding LNG imports and storing sufficient oil and gas stocks.

Uncertainty surrounding Europe's environmental, social and governance policies remains a key risk for investors in oil, gas and coal assets in the region, said Holtkemper. Europe's transition to renewables also brings risks, including carbon costs, potentially declining long-term fossil-fuel demand and increasing difficulty finding buyers when exiting investments, he added.

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Top subsectors and deals

Across subsectors, oil and gas refining and marketing led with $9.87 billion in investment, followed by oil and gas storage and transportation with $1.89 billion.

Oil and gas refining and marketing are particularly attractive due to consolidation opportunities, while storage and transportation offer investors predictable contracted or regulated cash flows, Holtkemper said.

Deal value in the subsector was buoyed by the DCC Energy acquisition, which was also the largest private equity deal in the overall sector during the first seven months of the year.

Four of the 10 largest deals were in oil and gas storage and transportation, including Sixth Street Partners LLC's $600 million acquisition of a 27% stake in Pinnacle Gas Services LLC and HPS Investment Partners LLC's $500 million investment in Texas LNG Brownsville LLC.

"Storage, transportation and LNG-related infrastructure are particularly appealing as governments and businesses prioritize energy security and supply reliability," Sewell said.