The report below gives a good overview of the Fall 2021 M&A activity in the Energy Industry Sector. The global energy system is at a point of inflection. On the one hand, the gradual recovery from the Covid-19 pandemic is driving the energy requirements, while on the other hand environmental considerations are pushing for energy transition. Achieving the climate targets articulated in the 2015 Paris Climate Agreement would require a massive reduction in carbon dioxide emissions. However, this does not seem to be the case. While 2020 saw roughly a 6% decrease in global CO2 emissions, the IEA projects that 2021 will see a rebound to 2019 levels or above. According to the new market research by The Business Research Company, the fossil fuel electricity market is expected to grow from $799.94 in billion 2020 to $833.71 billion in 2021 at a compound annual growth rate (CAGR) of 4.2%. Many studies estimate that fossil fuel consumption in 2040 will be similar to, and in some cases substantially higher than, 2019 levels. The demand for natural gas has witnessed an exponential rise in the recent decades, replacing coal in the power sector and becoming more widely used in buildings and industry around the world. There has been a global progress on the front of electricity generation from renewable sources of energy. Based on current policy settings and economic trends, electricity generation from renewables including hydropower, wind and solar PV is expected to grow strongly around the world over the next two years – by 8% in 2021 and by more than 6% in 2022.

Posted by Roy Graham.

Read the Entire Fall 2021 Energy Report Here

The report below gives a good overview of the Spring 2021 M&A activity in the Energy Industry Sector. Global investment in energy is set to rebound by nearly 10% in 2021 to USD 1.9 trillion, reversing most of last year’s drop caused by the Covid-19 pandemic, but spending on clean energy transitions needs to accelerate much more rapidly to meet climate goals, according to a new report from the International Energy Agency. With energy investment returning to pre-crisis levels, its composition is continuing to shift towards electricity: 2021 is on course to be the sixth year in a row that investment in the power sector exceeds that in traditional oil and gas supply, according to the World Energy Investment 2021 report. Global power sector investment is set to increase by around 5% in 2021 to more than USD 820 billion, its highest ever level, after staying flat in 2020. Renewables are dominating investment in new power generation capacity and are expected to account for 70% of the total this year. Upstream oil and gas investment is expected to rise by about 10% in 2021 as companies recover financially from the shock of 2020, but their spending remains well below pre-crisis levels.

Posted by Roy Graham.

Read the Entire Summer 2021 Energy Report Here

The report below gives a good overview of the Spring 2021 M&A activity in the Energy Industry Sector. The Energy industry is poised for faster growth in 2021 and the global demand is set to increase by 4.6% offsetting the 4% contraction in 2020 as per research published by IEA. Almost 70% of the projected increase in global energy demand is in emerging markets and developing economies, where demand is set to rise to 3.4% above 2019 levels. Energy use in advanced economies will be 3% below pre-Covid levels according to IEA. Third waves of the pandemic continue to extend the restrictions on movement and global energy demand has been low. But stimulus packages and vaccine rollouts are boosting the outlook for economic growth.

Posted by Roy Graham.

Read the Entire Spring 2021 Energy Report Here

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 2019 included 75 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in November when OMOG JV LLC, a joint venture of Rattler Midstream LP and Oryx Midstream Services LLC, acquired Reliance Gathering LLC, a portfolio company of Metalmark Capital LLC, for US$356 million in cash. Reliance Gathering is a crude oil gathering affiliate of Permian Basin-focused Reliance Energy. Reliance is a private Midland based oil and gas company focused on developing upstream and midstream assets. The Company has over 100,000 net acres in the Permian Basin, including approximately 40,000 net acres in the prolific Northern Midland Basin.

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The report below gives a good overview of the fourth quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q3 2019 included 53 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in August when Qatar Investment Authority, a subsidiary of Government of Qatar, acquired an undisclosed minority stake in Oryx Midstream Services LLC, a portfolio company of Stonepeak Partners LP for US$550 million. The transaction enhances Qatar Investment Authority’s United States Portfolio and its investment in major infrastructure projects. Founded in 2013, Oryx Midstream Services is located in Midland, Texas and acquires and develops oil and natural gas reserves.

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The report below gives a good overview of the third quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q2 2019 included 58 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector closed in June when Austin Energy acquired the Nacogdoches Generating Facility from Southern Power Co., which is ultimately owned by The Southern Co. for US$460 million. The transaction enhances Austin Energy’s portfolio of services and products. Nacogdoches Generating Facility is located in Texas.

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The report below gives a good overview of the second quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q1 2019 included 69 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in March when Diversified Gas & Oil Plc acquired gas assets, from HG Energy II Appalachia LLC, ultimately owned by HG Energy LLC for US$400 million in cash. The acquisition is expected to increase the production capacity of Diversified Gas & Oil Plc. The assets to be acquired comprise107 unconventional producing gas wells with a combined net daily production of more than 20,000boe. The wells are located in the West Virginia and Pennsylvania.

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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

The report below gives a good overview of the fourth quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q3 2018 included 130 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in July when Independence Contract Drilling, Inc. acquired Sidewinder Drilling. LLC for US$148.8 million in stock. The acquisition complements Independence Contract Drilling’s existing pad-optimal drilling fleets and operations focused in the Permian Basin, Haynesville region and other basins in Texas. Independence Contract Drilling engages in the provision of land-based contract drilling services for oil and natural gas producers. Founded in 2011, Sidewinder Drilling is located in Houston, Texas and owns and operates a fleet of premium land drilling rigs and provides contract drilling services.

During the past decade, the U.S. trade gap for energy products narrowed. From 2003 to 2007, the value of energy imports was about 10 times greater than the value of exports.

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The report below presents you with a good overview on the third Quarter M&A activity in the Energy Industry Sector. M&A activity for North American based target companies in the Energy sector for Q2 2018 included 63 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in April when Triple Crown Resources, LLC acquired Permian Oil & Gas Assets from Broad Oak Energy II, LLC for US$400 million. The acquisition would expand Triple Crown Resources’ oil and gas asset portfolio. The Permian Oil & Gas Assets are located in Irion County, Texas.

The price of oil fluctuated in the second quarter driven, in part, by OPEC production rates.
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