Energy M&A Activity Update

Energy M&A Activity Update

By Kim Levin

September 27, 2013

Wind turbineAccording to a report from Price Waterhouse Coopers (PwC), a leading global consulting firm, M&A activity for the energy industry was down in the first quarter of 2013. There were a total of 39 energy deals with values greater than $50 million, accounting for $17.2 billion in deal value, a decrease from the 53 deals worth $30.4 billion in the second quarter of 2012. On a sequential basis, deal volume in the second quarter dropped by five percent compared to the first quarter of 2013, with deal value falling by 37 percent during the same time period.

Divestitures drove U.S. energy mergers and acquisitions activity in the second quarter of 2013, according to PwC. Upstream deals accounted for 22 transactions, representing 56 percent of total deal volume totaling $6.4 billion. Additionally, there were 10 midstream deals, accounting for 26 percent of total deal volume in the quarter worth a total of $6.2 billion.

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