While oil and gas M&A activity declined slightly in 2013, the industry seems poised to reward players who understand the market’s signals. M&A activity in 2013 reveals some interesting trends driving the market. With favorable oil prices and market liquidity, independents, large-caps and state owned oil companies have been very active. Specific deal structures are gaining popularity and shareholder activism can present both perils and promise.

Upward Trends -

• Oil Prices: General agreement on that the oil price outlook favors oil weighted mergers and acquisitions.

• Available Capital: Availability capital and a favorable corporate finance market favor deal flow.

• Independents: Larger cap independent energy companies looking to grow positions or for transformational deals to kick start a company can quickly accomplish their goals through corporate acquisitions...