Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
The Power & Energy sector experienced subdued M&A activity in LTM though Q1 2025, with 307 transactions closed, continuing a downward trend from 350 in 2024 and 399 in 2023. Strategic buyers led with 77.2% of transactions, followed by financial buyers at 17.3%, and 5.5% undisclosed. This signals a consolidation-driven market led by incumbents. Valuation multiples declined modestly, with median TEV/EBITDA compressing slightly from 10.38x in 2024 to 10.2x in 2025, and TEV/Revenue narrowing from 3.0x to 2.9x, indicating cautious investor sentiment amid persistent economic volatility and elevated borrowing costs.1
Market Dynamics
Power & Energy transaction volume declined 12% YoY over the LTM through Q1 2025, continuing a multi-year slowdown from 493 deals in 2021 to 307 in 2025. This trend reflects persistent investor caution and tighter financing conditions. Valuation multiples have also compressed steadily since 2022, reinforcing a shift toward defensible, cash-generative assets over speculative growth, as buyers prioritize downside protection amid macroeconomic uncertainty.
Buyer Landscape
Strategic Acquirers: Completed 237 transactions (81.7%), focusing on expanding midstream assets and renewable infrastructure capabilities. Key transactions include ONEOK's $10.1 billion acquisition of EnLink Midstream.1
Financial Buyers: Closed 53 deals (18.3%), selectively targeting specialized and operationally efficient businesses. Notable deals included Apollo Global Management’s acquisition of Bold Production Services, highlighting private equity’s strategic investment in energy services niches.1
Industry Comparison
Compared to prior years, Power & Energy’s 12% YoY drop in deal count (LTM) contrasts with steadier activity in sectors like Industrials and Business Services. Despite a slowing deal pace, large-scale transactions in midstream infrastructure signaled a strategic commitment to core asset expansion. Additionally, conservative multiples in Power & Energy trailed those in higher-growth industries, reflecting the sector’s defensive positioning in a risk-sensitive environment.
Geographic Expansion
Top U.S. States: Texas (54 deals), California (23), and Illinois (14) led transaction volume, driven primarily by robust energy infrastructure investments and renewable energy initiatives.1
Cross-Border Trends: Limited international activity reflected domestic buyers' preference for U.S.-based assets, mitigating exposure to geopolitical uncertainties.
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value ($mm) |
| EnLink Midstream, LLC | ONEOK, Inc. | $10,089.70 |
| CenterPoint Energy LDC Businesses | Delta Utility Entities | $1,200.00 |
| Magnuss Corp. | X Machina Capital Strategies LP | $853.22 |
| OE2 North Holdings LLC | Hiland Partners Holdings, LLC | $640.00 |
| Engineered Transportation International | TerraVest Industries Inc. | $592.00 |
| Ironwood Midstream Energy Partners II, LLC | Plains All American Pipeline, L.P. | $475.00 |
| Parker Wellbore Company | Nabors Industries Ltd. |
$472.10 |
| SiEnergy Operating, LLC | Northwest Natural Holding Company | $427.20 |
| Gravity Water Midstream LLC | Delek Logistics Partners, LP | $293.83 |
| Nexans AmerCable Incorporated | Mattr Corp. | $280.00 |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Sun Energy Services, LLC | Enersol RSC LTD | $223.00 |
| Moser Engine Service, Inc. | Atlas Energy Solutions Inc. | $220.66 |
| Profire Energy, Inc. | CECO Environmental Corp. | $123.15 |
| Superior Midstream Appalachian, LLC | Pine Run Gathering LLC | $120.00 |
| Bangor Natural Gas Company | Unitil Corporation | $70.90 |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value ($mm) |
| Bold Production Services, LLC | Apollo Global Management, Inc. | n/a |
| Invenergy Renewables LLC | Blackstone Inc. | n/a |
| Trifecta Oilfield Services LLC | HB Capital | n/a |
| Stored Energy Systems, LLC | IGP Industries LLC | n/a |
| Falcon Electric, Inc. | Avnan Capital Ltd. | n/a |
Source S&P Capital IQ as of 4/21/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Power and Energy M&A:
- Digital Capability Acquisition
Energy companies are increasingly pursuing M&A to bolster digital capabilities, focusing on AI, automation, and data analytics to enhance operational efficiency and meet rising energy demands driven by AI and data centers. - Private Equity Consolidation
Private equity firms are actively consolidating energy assets, targeting companies with stable cash flows and growth potential, as seen in Brookfield's significant investments in AI infrastructure and renewable energy projects.2 - Recurring Revenue Premiums
Companies with recurring revenue models, particularly in renewable energy, are commanding higher valuations, reflecting investor preference for predictable cash flows amid market volatility. - Subsector Spotlight: Engineering Services
Valuations remain robust, with average EBITDA multiples ranging from 5–7x for upstream oil and gas to 9–11x for renewables, driven by demand for infrastructure and environmental consulting firms.3 - Subsector Spotlight: Energy Services
The sector is experiencing increased M&A activity as companies seek to expand service offerings and geographic reach.
Outlook for Next Quarter
Opportunities: The surge in AI-driven energy demand presents opportunities for acquisitions in power generation and infrastructure to support data center growth.2 4
Risks: Persistent inflation and high interest rates may pose challenges to financing and executing deals, potentially slowing M&A activity.
Predicted Activity: An uptick in private equity-driven divestitures and carve-outs is anticipated as firms adjust portfolios in response to economic conditions.5
PCE Transactions
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