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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

High Gas Prices Shift Consumers to the EV Market

Roughly 25% of car shoppers on Edmunds.com considered a hybrid, plug-hybrid, or electric vehicle a viable option, given the 31% spike in gas prices, from the March 11 record-high average of $4.33 compared to the same period last year. This percentage of car shoppers is a 39% increase from the week before March 13, an increase of 84% compared to the same week in February.1

Oil Reserves Released to Fight High Prices

The International Energy Agency, which includes the U.S., Japan, and several European countries, has agreed to release 60 million barrels of oil from reserves to combat the rising oil and gas prices in a tight market. With the war halting oil and gas production in Russia, crude prices sit well above $100 a barrel. OPEC aims to raise oil production by 400,000 barrels a day to alleviate supply-demand pressures.2

Lundin Energy Leads Renewable Energy

Incoming CEO and current COO of Lundin Energy, Daniel Fitzgerald, states the company seeks to become an industry leader in renewable energy through mergers or acquisitions of onshore renewable assets in the Nordic countries. Earlier this year, in a $14 billion cash and stock deal, Norway’s Aker BP bought Lundin’s oil and gas business, worth $11 billion. Lundin has had six transactions since 2019, with a total confirmed valuation of $22.5 billion.3

War Causes Uranium Oxide Price Increase

Since the Russian invasion of Ukraine, Uranium oxide prices have increased by 34%, up to roughly $57 per pound compared to $43 on February 21. Russia plays a vital role in supplying the remnants of processed uranium ore known as secondary uranium. While U.S. senators seek to introduce a bill to ban uranium imports from Russia, Russia is considering a response by banning uranium exports to the U.S.4

New Offshore Wind Lease Proposed

After the U.S. Department of Interior comes out of a record-setting lease sale of $4.37 billion in bids from developers for an offshore site in New York, it is set to offer two additional areas in the Carolina Long Bay. The locations have the potential energy to power half a million homes using offshore wind energy. The sales hope to create new jobs, strengthen the clean energy industry, and improve the domestic supply chain. 5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Phillips 66 Partners LP
  • Phillips 66 Company; Phillips 66 Project Development Inc.
  • $2,961.21
  • Arkansas and Oklahoma gas distribution assets of CenterPoint Energy, Inc.
  • Summit Utilities, Inc.
  • $2,150.00
  • Oasis Midstream Partners LP
  • Crestwood Equity Partners LP
  • $1,837.45
  • Fossil Fuel Electric Generating Assets located in New Jersey and Maryland of PSEG Power LLC
  • ArcLight Capital Partners, LLC
  • $1,370.00
  • Sinclair Transportation Company
  • Holly Energy Partners, L.P.
  • $744.13
  • New York American Water Company, Inc.
  • Liberty Utilities Co.
  • $608.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Mill Street Solar Project
  • Sunwealth Power, LLC
  • n/a
  • AL Pierce Generation facility of Connecticut Municipal Electric Energy Cooperative
  • Hull Street Energy, LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Nuverra Environmental Solutions, Inc.
  • Select Energy Services, Inc.
  • $55.98
  • Dawson Geophysical Company
  • Wilks Brothers, LLC
  • $42.57
  • Substantially All Assets and Business of AllCell Technologies, LLC
  • Beam Global
  • $33.91
  • Independence Hydrogen, Inc.
  • Suburban Renewable Energy, LLC
  • $30.00
  • BANGL, LLC
  • Rattler Midstream LP
  • $22.20

 

Source S&P Capital IQ as of 4/6/2022 and PCE Proprietary Data

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PCE Transactions

Contacts

Michael Poole

Orlando Office

407-621-2112 |

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Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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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. Patterson, Scott. “High Gasoline Price Have Consumers Thinking Electric.” The Wall Street Journal, Dow Jones & Company Inc., 23 Mar. 2022.
  2. Matthews, Christopher M. “Oil CEOs, Biden Officials Warn Oil Volatility Is Here To Stay.” The Wall Street Journal, Dow Jones & Company, Inc., 7. Mar. 2022.
  3. Adomaitis, Nerijus. “Lundin Energy aims to become renewable leader via M&A.” Reuters, Thomas Reuters Corporation, 7 Mar. 2022.
  4. Lee, Jinjoo. “How Ukraine War Enriches Uranium Miners.” The Wall Street Journal, Dow Jones & Company, Inc., 23 Mar. 2022.
  5. Volcovici, Valeria. “U.S. announces first offshore wind lease sale in Carolinas.” Reuters, Thomas Reuters Corporation, 25 Mar. 2022.
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