The energy sector has long been known for big and flashy deals, and in 2011 Kinder Morgan, Inc.’s unsolicited acquisition of El Paso Corporation was the biggest and flashiest of them all. In fact, at $37.4 billion including assumed debt, it was the world’s largest M&A deal of any kind (not counting AT&T Inc.’s failed acquisition of T-Mobile USA Inc.). The New York Times described the Kinder–El Paso tie-up as the crowning achievement in the career of Kinder Morgan CEO Richard Kinder, with the combined company owning or operating 67,000 miles of pipeline.
Indeed, as the global M&A market continues to rebound, energy deals have played a starring role. In 2011 energy, mining, and utilities accounted for $564 billion worth of global M&A deals, or about 25 percent of overall M&A activity, according to mergermarket. Rising oil prices and advances in drilling technology that promise to unlock the value of shale oil and gas deposits in the United States spurred much of the dealmaking, whether it was spin-offs aimed at creating pure natural gas pipeline plays or international mining companies seeking to buy shale assets in the U.S.
