Keyera Leads $5 Billion NGL Deal in Canadian Oil M&A Surge

Merger and acquisition activity in the Canadian oil and gas sector has accelerated significantly in the first half of the year, as evidenced by major deals such as the acquisition by Calgary-based pipeline company Keyera Corp. of Plains All American Pipeline's Canadian natural gas liquids (NGL) business. The $5-billion transaction, funded by Keyera's equity raise, highlights a trend of consolidation within the industry driven by the need to achieve size and scale for efficiency and competitiveness. According to data from Enverus Inc., M&A in the Canadian upstream sector saw a total deal value of approximately $13 billion in the first six months of 2025, a substantial increase compared to previous years. In the midstream sector, Keyera's transaction contributed to a significant rise in activity, from $3 billion in 2024 to approximately $6 billion in 2025. The transactions are mainly stock-for-stock swaps, mitigating the volatility of energy company valuations during fluctuating oil and gas prices. This consolidation trend is driven by the capital-intensive nature of the business and the need for large, efficient operations, especially under pressure from low investor sentiment and opportunistic market conditions. Notable potential deals, such as Strathcona Resources Ltd.'s bid for MEG Energy Corp., further highlight the active consolidation landscape. Keyera's strategic expansion also underlines the importance of political signals and policy support from Canadian governments to enable growth in energy exports.