Midstream M&A slows as firms favor bolt‑ons and foreign buyers

North American midstream M&A activity slowed in 2026 as many companies focused on bolt‑on acquisitions, executing projects already in development and returning cash to shareholders. Foreign buyers remained active, with Abu Dhabi’s 2PointZero agreeing to buy Traverse Midstream for $2.25 billion earlier this year.

The Traverse transaction gives the buyer a 35% interest in the 3.4 Bcf/d Rover Pipeline and a 25% interest in the Ohio River System, both operated by Energy Transfer. Analyst estimates attribute about 80% of Traverse’s cash flow to Rover. Rover has firm take‑or‑pay contracts covering more than 85% of capacity, with an average remaining contract life of about 11 years. The deal implies an enterprise‑value‑to‑EBITDA multiple of about 11.3x.

Deal flow in 2026 has tilted toward smaller, strategic bolt‑on purchases that add volumes and operational synergies to existing networks. Western Midstream agreed to buy Brazos Delaware II for $1.6 billion at about an 8.0x multiple on 2027 EBITDA estimates and expects the multiple to fall to roughly 7.5x after synergies; the deal was slated to close in the second quarter. Kinder Morgan acquired the Monument Pipeline for $505 million; management expects the transaction to run at under an 8.0x multiple in the medium term. The Monument asset is backed by take‑or‑pay contracts with an average life of nine years.

Other bolt‑on activity included Gibson Energy’s purchase of the Chauvin infrastructure assets in Canada and Antero Midstream’s acquisition of a Marcellus gathering system paired with the sale of non‑core Ohio Utica assets at better than an 11x EBITDA multiple.

By comparison, 2025 featured several company‑level deals. Brookfield paid roughly $9 billion for Colonial Pipeline; Keyera bought Plains All American’s Canadian NGL business for $3.3 billion (closed in May 2026); MPLX acquired Northwind Midstream for $2.4 billion; and Sunoco completed a transaction valued at more than $9 billion for Parkland and committed at least $500 million for bolt‑on M&A in 2026. Western Midstream also completed a cash‑and‑stock acquisition of Aris Water Solutions valued at about $1.5 billion.

A number of firms signaled selective appetite for further acquisitions. Energy Transfer reiterated interest in larger transactions, including opportunities beyond North America. Several other midstream companies indicated openness to bolt‑on deals that complement existing assets.

Investors can track midstream exposure through infrastructure indices. As of June 5, the Alerian MLP Infrastructure Index yielded about 7.0% and the Alerian Midstream Energy Select Index yielded roughly 4.6%, reflecting current dividend and cash‑return profiles across the sector.