The study examined the impact of capital structure and financial performance of oil and gas companies in Nigeria (2014 – 2018). The annual financial statements of all the listed oil and gas companies in Nigeria Stock Exchange were used for this study. The multiple regression analysis was used to test the relationship between capital structure and financial performance. To return on equity (ROE) and return on asset (ROA), while debt ratio (DR) as capital variable. The study revealed that there is a significant relationship between capital structure and financial performance. Therefore, the study recommends that oil and gas companies’ management should leverage on short term debt management strategy to enhance their financial performance.