Upstream Oil & Gas M&A Deals Drop To Five-Year Low

Merger and acquisition activity in the upstream oil and gas industry plunged nearly 50% in 2013, compared to the value of such deals in 2012.

The value of global oil and gas M&A deals fell to $136 billion in 2013. That’s the lowest level for such deals since the 2008 recession.

Many companies were focused on digesting the more than $600 billion in deals completed between 2010 and 2012. Christopher Sheehan is director of energy M&A research for economic analysis firm IHS.

“You had [a] record level of global upstream M&A transaction value in 2012 — more than $250 billion worth transactions — including some very large corporate transactions, headlined by CNOOC buying Nexen for more than $20 billion. There’s no corporate deals over $5 billion dollars in 2013.”

The industry’s largest M&A transaction of the year was Devon Energy’s purchase of GeoSouthern Energy’s Eagle Ford Shale assets for $6 billion. GeoSouthern is headquartered in The Woodlands.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...