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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

ExxonMobil Announces Acquisition

ExxonMobil’s acquisition of Pioneer Natural Resources, valued at $59.5 billion, is set to reshape the U.S. oil industry. The deal makes ExxonMobil the largest player in U.S. shale oil, doubling its footprint in the Permian Basin. The merger is expected to generate double-digit returns by recovering more resources more efficiently and with a lower environmental impact.1

United Nations COP28 Strikes Historic Deal for Global Climate Action

The United Nations Climate Change Conference, commonly known as COP28, concluded with a historic deal as representatives from nearly 200 countries committed to reducing global fossil fuel consumption. The agreement aims for a just, orderly transition to sustainable energy systems, targeting net-zero emissions by 2050. The success of the agreement hinges on effective implementation, marking a significant stride in breaking from fossil fuels to tackle the climate crisis.2

Surging U.S. Fuel Reserves Defy Predictions, Spur Global Advantage

The energy sector experiences a notable increase in U.S. crude oil and gasoline reserves, propelled by augmented refinery capacity and unprecedented crude output levels. In contrast to predictions, gasoline stockpiles unexpectedly surged by 2.7 million barrels, surpassing the anticipated 700,000-barrel increase according to surveys. As OPEC+ trims production from Saudi Arabia and Russia, the U.S. gains a strategic advantage, capable of fulfilling orders for customers seeking alternatives to Red Sea-related threats.3

Profit Dip Sparks Prime Energy Market Buying Opportunity

Allete Inc., a U.S. power utility and renewable energy developer valued at around $5.2 billion, is considering a company sale. Operating diverse power generation assets in the Upper Midwest, including wind, solar, coal-fired, biomass, and hydroelectric facilities, Allete faces this decision as its shares, down 14%, trail the S&P Utilities index. The shift towards renewable energy impacted profitability, prompting the exploration of strategic alternatives.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Crestwood Equity Partners LP
  • Energy Transfer LP 
  • $7,282.79
  • Columbia Gas Transmission, LLC/Columbia Gulf Transmission, LLC
  • Global Infrastructure Management, LLC
  • $3,900.00
  • Holly Energy Partners, L.P.
  • HF Sinclair Corporation 
  • $3,148.54
  • Deriva Energy
  • Brookfield Renewable Corporation 
  • $2,800.00
  • South Texas Midstream, LLC
  • Kinder Morgan, Inc.
  • $1,815.00
  • South Texas Project Electric Generating Station of Texas Genco GP, LLC
  • Constellation Energy Generation, LLC
  • $1,750.00
  • Pivotal Utility Holdings, Inc.
  • Chesapeake Utilities Corporation
  • $923.41
  • Meritage Midstream Services II, LLC
  • Western Midstream Partners, LP
  • $885.00
  • Rocky Mountain Midstream LLC
  • The Williams Companies, Inc.
  • $714.00
  • Cureton Front Range LLC
  • Williams Field Services Group, LLC
  • $560.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Commercial Distributed Generation Business of Duke Energy Corporation
  • ArcLight Capital Partners, LLC
  • $364.00
  • Morris Cogeneration LLC
  • Fengate Capital Management Ltd.; Ironclad Energy Ventures, LLC; LiUNA Pension Fund of Central & Eastern Canada
  • n/a
  • Allied Components International
  • Avnan Capital
  • n/a
  • Power Grid Components, Inc.
  • Blackstone Inc.
  • n/a
  • Solar Portfolio of Southern Power Company
  • APG Groep NV
  • n/a
  • Chauvet & Sons, LLC
  • Court Square Capital Management, L.P.
  • n/a
  • Kleen Energy Systems, LLC
  • ArcLight Capital Partners, LLC
  • n/a
  • AXH air-coolers, LLC
  • Windjammer Capital Investors LLC
  • n/a
  • Adams Magnetic Products Co., Inc.
  • High Street Capital
  • n/a
  • Central Moloney, Inc.
  • Wind Point Advisors, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Marine Oil Terminal Corporation
  • JSW Terminal (Middle East) FZE
  • $187.00
  • Project Hyperion, LLC
  • Altus Power, LLC
  • $128.00
  • Frederickson Power LP
  • Capital Power Corporation
  • $97.50
  • Water Solutions Unlimited, Inc.
  • Hawkins, Inc.
  • $75.00
  • Ergon Midstream, LLC
  • Ergon, Inc.
  • $59.70
  • Water and Wastewater System Assets of Jefferson Utilities INC.
  • West Virginia-American Water Company
  • $27.00
  • Municipal Water and Wastewater Treatment Systems of Town of New Hartford
  • Aquarion Water Company, Inc.
  • $8.00
  • Ramey Environmental Compliance, Inc.
  • PERC Water Corporation
  • $4.19
  • Water and wastewater systems of Donahue
  • Iowa-American Water Company Inc.
  • $1.75
  • Water assets & wastewater collection & treatment assets of Conewago Industrial Park Water & Sewer co
  • The York Water Company 
  • $0.57

 

Source S&P Capital IQ as of 1/18/2024 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. Chapman, M. “Exxon Mobil doubles down on fossil fuels with $59.5 billion deal for Pioneer Natural as prices surge.” AP News, October 11, 2023.
  2. 2. Volcovici, V.; Dickie, G.; et.al “Nations strike deal at COP28 to transition away from fossil fuels.” Reuters, December 13, 2023.
  3. 3. Harrup, A. “U.S. Crude Oil, Gasoline Stocks Rise as Refineries Ramp Up Runs.” The Wall Street Journal, December 20, 2023.
  4. 4. French, D. “US power utility Allete explores sale, sources say.” Reuters, December 5, 2023.
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