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Mike Rosendahl

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Industry Trends

BWXT Selected to Build First U.S. Advanced Nuclear Microreactor

On June 9th, BWX Technologies was selected by the U.S. Department of Defense to build the first advanced nuclear microreactor in the United States. The reactor will provide the Department of Defense with a consistent power source for operations that previously required extensive fossil fuel supply lines. The reactor may also have decarbonization initiatives and disaster response and recovery applications. The contract, valued at approximately $300 million, will be completed and delivered to the Idaho National Laboratory for testing in 2024.1 2

California Drought Expected to Increase Western Electricity Prices

Hydropower generation in California this summer is expected to decrease from 15% to 8% of the state's electricity as droughts continue for the third year. Wholesale electricity prices are expected to rise by 5% in the coming months as California relies on neighboring states for additional electricity. The state anticipates relying on natural gas to offset the decline in hydropower generation, which is expected to increase state carbon dioxide emissions by 6% in 2022.3

Chevron Completes Acquisition of Renewable Energy Group, Inc.

On June 13th, Chevron acquired the outstanding shares of Renewable Energy Group, Inc. for $3.15 billion. The acquisition will combine Chevron's traditional business operations with one of the leading U.S. renewable fuels companies. The acquisition is meant to accelerate Chevron's goals of providing energy with lower carbon intensity.4

Biden Administration Seeks $4.3 Billion to Buy Domestic Uranium

As conflicts in Ukraine continue, the Biden administration is considering a $4.3 billion plan to boost domestic Uranium production. The plan would offset potential sanctions on Russian imports of enriched uranium. Russia accounted for 16.5% of U.S. Uranium imports in 2020. Currently, the U.S. has only one commercial enrichment facility in New Mexico.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • The Narragansett Electric Company
  • PPL Energy Holdings, LLC
  • $5,119.86
  • FirstEnergy Transmission, LLC
  • Brookfield Infrastructure Partners L.P.
  • $2,375.00
  • Clearway Community Energy Development LLC
  • KKR & Co. Inc.
  • $1,900.00
  • Sempra Infrastructure Partners, LP
  • Black River B 2017 Inc.
  • $1,730.00
  • Southwest Gas Holdings, Inc.
  • Icahn Enterprises L.P.
  • $982.31
  • BP Midstream Partners LP
  • BP Midstream Partners Holdings LLC
  • $689.85

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • VCP, LLC
  • AB CarVal Investors
  • n/a
  • Schumacher Electric Corporation
  • Ripple Industries LLC
  • n/a
  • SPL, Inc.
  • Sentinel Capital Partners, L.L.C.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • 3 Bear Delaware Operating - NM LLC
  • DKL Delaware Gathering, LLC
  • $624.70
  • Fluence Bioengineering, Inc.
  • Signify N.V.
  • $272.00
  • New Fortress Energy Inc.
  • Undisclosed Buyer
  • $253.00
  • Wastewater system assets of York City Sewer Authority, Pennsylvania
  • Pennsylvania-American Water Company, Inc.
  • $235.00
  • Monument Pipeline, LP
  • ARM Energy Holdings, LLC
  • $203.00

 

Source S&P Capital IQ as of 7/8/2022 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. Walton, Robert. “Defense Department Picks BWXT to Build 1st U.S. Advanced Nuclear Microreactor, with 2024 Delivery.” Utility Dive, June 9th 2022.
  2. Simmons, Jud. “BWXT to Build First Advanced Microreactor in United States.” Business Wire, June 9th 2022.
  3. Balaraman, Kavya. “California Drought Could Halve Summer Hydropower Generation, Leading to More Natural Gas, Eia Finds.” Utility Dive, May 27th 2022.
  4. Kruzich, Tyler. “Chevron Completes Acquisition of Renewable Energy Group.” Business Wire, June 13th 2022.
  5. Natter, Ari. “U.S. Seeks $4.3 Billion for Uranium to Wean Off Russia Supply.” Bloomberg.com, Bloomberg, June 7th 2022.
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