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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Energy Industry Sector

By Roy Graham | Feb 20, 2019

The report below gives a good overview of the first quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q4 2018 included 52 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was closed in November when Ørsted A/S acquired Deepwater Wind, LLC from D E Shaw & Co LP for US$510 million in cash. The acquisition is in line with growth strategy of Ørsted. Ørsted engages in the provision of renewable energy solutions. It operates through the following segments: wind power, bioenergy & thermal power, distribution and customer solutions. Founded in 2007, Deepwater Wind is located in Rhode Island and operates offshore wind power projects.

West Texas Intermediate had a difficult quarter due to an over-supplied market.

Industry Indicators

  • The average US retail price for diesel and regular gas, a major operating cost for distributor fleets in the wholesale sector, rose and fell 8.6% and 2.6%, respectively, in the week ending December 10, 2018, compared to the same week in 2017.
  • Crude shipments to the U.S. from OPEC and its partners fell to 1.41 MM bpd in January, the lowest in five years according to World Oil News.
  • Through November 2018 US exports of natural gas continued to rise for the third straight year with the aid of increased pipeline exports to Mexico and significant increases in the export of LNG.

Posted by Roy Graham.

Read the Entire Energy 1st Quarter Newsletter Here


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