Oil & Gas Mergers and Acquisitions Report – Year-end 2013

The deal market quiets down


For the oil and gas industry, 2013 was a year to focus on the development of resources. There was a drop in merger and acquisition (M&A) deal values from $349 billion in 2012 to $205 billion in 2013 or 41 percent. Many producers focused on developing properties they acquired in previous years, streamlining operations, and maximizing the return on assets held. The industry completed 119 fewer deals in 2013 than in the previous year.

The decline in M&A activity in 2013 was the largest in five years, with the total number of deals for the U.S. and Canada falling by 21 percent to 398 from 505. The U.S. was, however, the center of deal activity in 2013, accounting for 45 percent of all transactions. Despite the slowdown in deals, the market shows signs of a rebound heading into 2014.

Deloitte has prepared the Oil & Gas Mergers and Acquisitions Report – Year-end 2013: The deal market quiets down. The report covers deals from the past 12 months by industry sector. Highlights for each sector include:

  • Exploration and production companies adopted a more strategic focus to their transactions during the year
  • Smaller deals dominated oilfield equipment and services companies and consolidation may be coming for the sector
  • The need for infrastructure continues to attract capital and drive transactions within the midstream sector
  • It was another quiet year for refining and marketing companies as they continue to adapt to new crude supplies

This report reveals the insights of Deloitte M&A specialists on what is driving activity in each sector.

As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.