Oil & Gas Mergers and Acquisitions Report — Midyear 2014

The deal market may be poised for a rebound

​​​​​​​​​​​For the oil and gas industry, the first half of 2014 saw a continuation of many of the trends present in 2013—the development of resources rather than the acquisition of new ones. This report covers deals from the past six months by industry sector and reveals the insights of Deloitte merger and acquisition specialists on what is driving activity in the oil and gas industry.​

Companies are now focused on cost containment and organic growth, particularly in the upstream sector, where producers are looking to ensure they have the right mix of properties in their portfolio. A total of 299 transactions were completed in the first six months of 2014, one less than in the same period a year earlier. At the same time, the total value of deals in the first half of 2014 rose by nearly $40 billion globally to $141 billion from $102 billion in the first half of 2013.

The United States and Canada accounted for 61 percent of all deal activity, though this percentage slipped slightly from the first half of 2013. In the first half of the year, both Asia and South America saw increases in their share of the deal count rising nearly 20 percent and 50 percent, respectively.

Deloitte’s new report covers deals from the past six months by industry sector. Highlights for each sector include:

  • North American shale plays continue to dominate the deal market in the exploration and production (E&P) sector
  • The oilfield services sector saw an increase in deal value, thanks in part to three large deals, and margin pressure from the E&P sector may drive additional consolidation among middle market players
  • There has been a dramatic slowdown in deal activity in the midstream sector during 2014 after a flurry of transactions in 2012 and 2013
  • Robust deal activity is occurring in the refining and marketing sector driven by an increase in retail transactions
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