Shale plays were represented in 27 deals with values more
than $50 million in fourth-quarter 2013, totaling $23.8 billion, a 338% increase in total deal value compared to the
Overall for the year, oil and gas companies partook in 79
shale deals valued at $53.2 billion, an increase of $51.7 billion from 2012.
There were 19 total upstream shale deals representing
$11 billion, compared with 15 total deals worth $5 billion
in third-quarter 2013. Midstream shale-related deals totaled
eight for the fourth-quarter 2013, representing $12.8 billion.
“In the fourth quarter of 2013, shale deal activity increased along with broader conventional industry activity,
especially in the Marcellus shale,” said John Brady, a Hous-ton-based partner with PwC’s energy practice.
The most active shale plays for M&A with values greater
than $50 million in fourth-quarter 2013 were the Eagle Ford
with five deals totaling $6.5 billion and the Marcellus with
four deals representing $1.1 billion.
The Eagle Ford and Marcellus were also the most active
shale plays in the second quarter. In M&A deals with values
greater than $50 million, the Eagle Ford was the site of three
transactions contributing $1.5 billion total while the Marcel-
lus saw three deals totaling $416 million (OGJ Online, Aug.
“[The Marcellus] bounced back in the quarter, as stronger
performance per well has reinvigorated returns, driving additional interest in acreage in the Northeast. If shale plays
continue to adapt more efficient production processes to optimize the play and improve returns, activity in unconventionals will continue to be robust,” Brady remarked.
The Niobrara and Utica each contributed two deals valued at $1.2 billion and $263 million, respectively.
Types of deals
Upstream deals accounted for 59% of activity in fourth-quarter 2013 with 30 transactions, representing $19.8 billion, 47% of total fourth quarter deal value. Of those deals,
10 were oil and four were gas.
Nine midstream deals contributed $14.1 billion, a 994%
increase in deal value from third-quarter 2013. Seven downstream deals during fourth-quarter 2013 added $4 billion
while oil field services contributed five deals worth $3.7 billion.
Master limited partnerships were involved in 54 transactions overall in 2013, about 30% of total 2013 deal activity,
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