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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

Texas Oil Production Influences Brent Crude Calculation

Brent is a global benchmark influencing daily trading prices for a significant portion of crude oil and liquefied natural gas worldwide. Starting with deliveries in early June, oil drilled near Midland, TX will now factor into calculations for the price of Brent crude. It is the first time a non-European grade will be used to help compute the global pricing standard, acknowledging how the shale revolution made the U.S. an energy superpower.1

DOE Releases Clean Hydrogen Strategy

The Department of Energy released what it is calling the U.S. National Clean Hydrogen Strategy and Roadmap, a framework intended to speed up the production, processing, delivery, storage, and use of clean hydrogen. Expected DOE investments include $1 billion for a Clean Hydrogen Electrolysis Program, $500 million for Clean Hydrogen Manufacturing and Recycling, $8 billion for Regional Clean Hydrogen, and a Clean Hydrogen Production Standard.2

TotalEnergies to Purchase Stake in NextDecade

TotalEnergies will buy a 17.5% stake in U.S. liquefied natural gas (LNG) developer NextDecade for $219 million as part of a broader deal. The deal will enable the Texas company’s Rio Grande LNG export project to proceed. Record LNG exports from the United States helped soften the blow to Europe from sharply lower Russian pipeline natural gas supplies in 2022. They will remain a key energy source for the continent.3

Brookfield Renewable to Acquire Duke Energy’s Renewables Business

Brookfield Renewable is buying Duke Energy’s utility-scale renewable energy business for $2.8 billion. Duke Energy expects the deal involving the unregulated business to close by the end of 2023. The investor-owned utility expects approximately $1.1 billion net proceeds from the transaction. The sale agreement includes more than 3,400 MWac of utility-scale solar, wind, and battery storage across the U.S.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Centurion Pipeline Company LLC
  • Energy Transfer LP
  • $1,420.30
  • DCP Midstream, LP
  • Phillips 66 Project Development Inc.
  • $1,328.50
  • Tres Palacios Gas Storage LLC
  • Enbridge (U.S.) Inc.
  • $335.00
  • Retail, Wholesale and Fleet Fueling Assets of WTG Fuels, Inc.
  • GPM Southeast, LLC
  • $140.40
  • Bison Gear & Engineering Corp.
  • AMETEK, Inc.
  • $99.30
  • Spinnaker Oilfield Services LLC
  • RPC, Inc.
  • $79.00
  • Siren Energy, LLC
  • Liberty Power Innovations LLC
  • $78.00
  • Kaiser Eagle Mountain, LLC
  • Ecology Mountain Holdings LLC
  • $22.58
  • Rauckman Utility Products, LLC
  • National Safety Apparel, Inc.
  • n/a
  • Complete Recycling Solutions, LLC
  • TerraCycle, Inc
  • n/a

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Natural Gas Pipeline Company of America LLC
  • ArcLight Capital Partners, LLC
  • n/a
  • GATE Energy
  • GATE Energy, Employee Stock Ownership Plan
  • n/a
  • Shaw Pipeline Services, Inc.
  • Achieve Capital LLC
  • n/a
  • 855 Megawatt Power Plant Portfolio of Mesquite Generation Holdings LLC
  • Hull Street Energy, LLC
  • n/a
  • Sos Mfg., Inc.
  • Auxo Investment Partners, LLC
  • n/a
  • Solar and Battery Development Portfolios of Saturn Power
  • Greenwood Sustainable Infrastructure
  • n/a
  • Richwood Industries, Inc.
  • Argosy Capital Group, Inc.; Stone River Capital Partners, L.L.C
  • n/a
  • Kurtzman Carson Consultants LLC
  • GCP Capital Partners LLC
  • n/a
  • Business of CLS Consulting, LLC
  • Clearstead Advisors, LLC
  • n/a
  • Enercon Services, Inc.
  • Oaktree Capital Management, L.P.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Oregon Shines
  • Arcadia Power, Inc.
  • n/a
  • Phoenix Abandonment LLC
  • Carbon Shield LLC
  • n/a
  • Apollo Propane Inc.
  • Ferrellgas Partners, L.P.
  • n/a
  • MSCS Ltd.
  • SPATCO Energy Solutions, LLC
  • n/a
  • Vode Lighting LLC
  • LMPG Inc.
  • n/a
  • Electromagnetic Industries LLP
  • OlympicControls Corp.
  • n/a
  • Chandler Signs, LLC
  • Pattison Sign Group Inc.
  • n/a
  • POMCube Inc.
  • Savant Systems, Inc.
  • n/a
  • Equilibrium Energy, Inc.
  • Hatch Renewables
  • n/a
  • White Oil Company
  • Hemisphere Limited LLC
  • n/a

 

Source S&P Capital IQ as of 7/6/2023 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. Uberti, David. “Move Over, Scotland. U.S. Oil Enters World’s Most Important Benchmark.” The Wall Street Journal, 31 May, 2023.
  2. 2. “DOE releases clean hydrogen strategy.” Renewable Energy World, 6 June, 2023.
  3. 3. Hernandez, A. “TotalEnergies buys $219 million stake in LNG developer NextDecade.” Reuters, 14 June, 2023.
  4. 4. Engel, John. “Brookfield buying Duke’s utility-scale renewables business for $2.8 billion.” Renewable Energy World, 12 June, 2023.
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