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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

OPEC Raises Forecast for 2024

OPEC maintained its global oil demand growth projections and upgraded economic forecasts due to declining inflation and expected interest-rate cuts. The organization expects demand to increase by 2.2 million barrels per day in 2024 and 1.8 million barrels per day in 2025. The global economic growth forecast for 2024 was raised to 2.8%, supported by robust growth in China, India, and the U.S. and the anticipated increase in consumer spending.1

M&A in North America’s Pipeline Sector Heating Up

EQT Corp.'s $5.5 billion acquisition of its former unit, Equitrans Midstream, underscores a growing trend toward vertical integration in the natural gas market. With the combined entity valued at over $35 billion, synergies are expected to reach $250 million annually. EQT's majority stake in the merger reflects a broader consolidation pattern, echoing recent significant deals in the energy infrastructure space.2

Artificial Intelligence Challenges Energy Revolution

The energy industry is witnessing a surge in artificial intelligence (AI) adoption, raising concerns about its substantial electricity demands. The proliferation of AI-powered data centers strains power grids and challenges the transition to cleaner energy sources. Utilities, facing unprecedented demand, must balance increasing generation capacity with carbon emission reduction goals. This paradigm shift highlights the delicate balance between technological advancement and sustainability in the energy sector.3

Private Equity Balancing Renewables Transition with Lucrative Sectors of Old

Private equity groups are strategically navigating the energy transition landscape. While some are capitalizing on the lucrative returns of oil and gas investments, others channel funds into renewable energy initiatives. Balancing short-term returns with long-term sustainability goals, PE firms are restructuring portfolios to align with evolving market dynamics. Despite the rise of renewables, PE groups are concurrently exploring deals in lucrative traditional energy sectors, optimizing investment strategies to meet diverse mandates, and capitalizing on emerging opportunities in the evolving energy ecosystem.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Dominion Energy Questar Corporation
  • Enbridge Inc. 
  • $6,570.00
  • FirstEnergy Transmission, LLC
  • Brookfield Corporation 
  • $3,500.00
  • New Harquahala Generating Company, LLC
  • BlackRock, Inc. 
  • $775.00
  • CXA La Paloma, LLC
  • Capital Power Corporation 
  • $675.00
  • Summit Midstream Utica, LLC
  • MarkWest Utica Operating Company, LLC
  • $625.00
  • Certain Assets of Exxon
  • Sable Offshore Corp.
  • $625.00
  • Two Operating Power Plants
  • Puerto Rico Electric Power Authority
  • $373.00
  • 150 MW Portfolio of Enel Green Power North America, Inc.
  • Ormat Technologies, Inc. 
  • $271.00
  • Green Plains Partners LP
  • Green Plains Inc.
  • $249.42
  • New Mexico Renewable Development LLC
  • Exus North America Holdings, LLC
  • $234.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Energos Infrastructure Management, LLC
  • Apollo Global Management, Inc.
  • $136.40
  • Residential Lighting business of Hubbell Incorporated
  • Kingswood Capital Management, L.P.
  • $131.00
  • Progress Lighting, LLC
  • Kingswood Capital Management, L.P.
  • $131.00
  • A portfolio of 38 solar energy and battery storage projects.
  • BlackRock, Inc.
  • n/a
  • Electro-Mechanical, LLC
  • Oaktree Capital Management, L.P.
  • n/a
  • USA Water Holdings, LLC
  • Levine Leichtman Capital Partners, LLC
  • n/a
  • Delaware Basin Residue, LLC
  • I Squared Capital Advisors, LLC
  • n/a
  • 400 MWs of battery energy storage projects
  • UBS Asset Management AG
  • n/a
  • Third Pillar Solar, LLC
  • Glentra Capital P/S
  • n/a
  • Stewart Tubular Products, LLC
  • Pelican Energy Partners LP
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Powered Business of Proterra Operating Company
  • AB Volvo (publ)
  • $210.00
  • Omega Pipeline Company, LLC/Omega Gas Marketing, LLC/MoGas Pipeline LLC/United Property Systems, LLC
  • Spire Midstream LLC
  • $175.00
  • Three Microgrids And District Energy Systems In Allegheny, Pennsylvania of Essential Utilities, Inc.
  • Cordia LLC
  • $165.00
  • 84 megawatts of Solar Assets of Vitol Solar I LLC
  • Altus Power, LLC
  • $118.00
  • Victory Oilfield Tech, Inc.
  • Victory Oilfield Tech, Inc.
  • $117.27
  • 97MW of solar assets in Peru
  • Yinson Holdings Berhad
  • $90.00
  • Bright Canyon Energy Corporation
  • Ameresco, Inc.
  • $87.96
  • SNC Manufacturing Co., Inc.
  • Allient Inc.
  • $20.00
  • Iconn, Inc.
  • Cape EMS Berhad
  • $16.50
  • U.S. hydroelectric facility
  • Cascade Digital Power
  • n/a

 

Source S&P Capital IQ as of 4/11/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Joe Anto

New York Office

407-621-2141 |

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Eric Zaleski

Chicago Office

847-239-2466 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Petroni, G. “OPEC Holds Oil Demand View Steady, Raises 2024 Economic Forecast.” The Wall Street Journal, March 12 2024.
  2. 2. Thomas, L. “EQT Corp. has agreed to acquire its former unit, Equitrans Midstream, in a $5.5 billion deal.” The Wall Street Journal, March 11 2024.
  3. 3. Blunt, K. & Hiller, J. “Big Tech’s Latest Obsession Is Finding Enough Energy.” The Wall Street Journal, March 24 2024.
  4. 4. PricewaterhouseCoopers “Next in energy and utilities 2024.” PWC Insights and Publications, 2024.
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