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 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.