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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

Oil Production Milestones Set Stage for Industry Consolidation

U.S. oil production in 2024 reached a record high for the second straight year, exceeding 13.2 million barrels per day due to improved technologies, supportive market dynamics, and intentional investments. This growth, combined with a projected global oil surplus in 2025, creates favorable conditions for consolidation. Larger firms are likely to expand their portfolios through acquisitions, while small to mid-sized companies explore mergers or partnerships to navigate an increasingly competitive market landscape.1 2

Rising Demand Positions Nuclear Energy for Growth

In 2024, nuclear energy stocks like Constellation Energy and Vistra outperformed the market, surging 91% and 258%, respectively, fueled by demand from energy-intensive sectors like AI and data centers. Constellation’s $840 million contract with the U.S. General Services Administration underscores the growing reliance on nuclear as a secure power source. Looking to 2025, the global shift toward energy security, the expansion of small modular reactors (SMRs), and investments in nuclear infrastructure position the industry for sustained growth, as renewables struggle to meet increasing electricity demands.3 4

All-of-the-Above Energy Policy Under Trump

The Trump administration’s 2025 energy agenda prioritizes expanding U.S. fossil fuel dominance alongside strategic growth in other energy sectors. Plans include lifting restrictions on liquified natural gas (LNG) export permits, accelerating drilling on federal lands and offshore, and reopening key pipeline projects. These initiatives could boost short-term oil and gas production while reshaping the energy landscape, encouraging investments from traditional energy players and positioning small- to mid-sized firms to compete in emerging LNG and drilling opportunities.5 6

Efficiency-Driven M&A Signals Broader Energy Sector Shift

IBM’s November 2024 acquisition of Prescinto and Innovex’s December 2024 purchase of Downhole Well Solutions reflect a growing trend of efficiency-driven mergers and acquisitions in the energy sector. IBM’s move underscores the growing priority of optimizing renewable energy assets, while Innovex’s deal highlights the rising demand for optimization tools in oil and gas operations. Together, these acquisitions illustrate how companies across energy markets are targeting efficiency and performance enhancements to meet evolving operational and market demands.7 8

Expanding U.S. Data Center Market Fuels Energy Demand

The U.S. data center market continues its rapid expansion, driven by increasing reliance on cloud computing, AI technologies, and digital infrastructure. With 1,692 active facilities, 332 under construction, and 691 announced as of December 2024, the sector's growth is expected to continue into 2025 to meet escalating digital demands. States like Virginia and Texas lead development, amplifying the need for sustainable energy solutions and grid reliability.9

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • EnLink Midstream, LLC 
  • ONEOK, Inc.
  • $2,943.17
  • Avangrid, Inc.
  • Iberdrola, S.A.
  • $2,596.55
  • Medallion Midstream, LLC
  • ONEOK, Inc.
  • $2,434.30
  • Guardian Pipeline, L.L.C./Midwestern Gas Transmission Company/Viking Gas Transmission Company
  • DTM Interstate Transportation, LLC
  • $1,200.00
  • Fikes Wholesale, Inc./Group Petroleum Services, Inc.
  • Casey's General Stores, Inc.
  • $1,145.00
  • Piñon Midstream, LLC
  • Enterprise Products Partners L.P.
  • $950.00
  • Tall Oak Midstream III, LLC
  • Summit Midstream Partners, LP
  • $450.00
  • Crown Technical Systems, Inc.
  • Flex Ltd.
  • $325.00
  • The Green Pastures I and II wind farms in Texas
  • Corporación Acciona Energías Renovables, S.A.
  • $202.50
  • Meridian Equipment Leasing / Equipment Transport / Endeavor Crude / Silver Fuels Processing
  • Vivakor, Inc.
  • $169.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Liquefaction and Storage Facility in Miami, Florida.
  • Pennybacker Capital Management, LLC
  • $62.00
  • Chicago Switchboard, LLC
  • Greenbriar Equity Group, L.P.
  • n/a
  • Luxxbox USA, Inc.
  • F&P Equity Partners S.r.l.
  • n/a
  • Hoffman Engineering LLC
  • Branford Castle Partners, L.P.
  • n/a
  • 6.4 megawatt solar project, Warrior
  • CleanCapital LLC
  • n/a
  • D.A. Schoggin, Inc.
  • Gen Cap America, Inc.
  • n/a
  • Vista Ridge Water Pipeline in San Antonio
  • Ullico Investment Advisors, Inc.
  • n/a
  • Advance Switchboard Distribution, LLC
  • N3 Capital Management, LLC
  • n/a
  • Freeport Power Limited
  • Fengate Capital Management Ltd.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Kitty Hawk North Offshore Lease Area
  • Dominion Energy, Inc.
  • $160.00
  • 91 megawatt (MW) residential solar portfolio of NJR Clean Energy Ventures II Corporation
  • Spruce Power Holding Corporation
  • $132.50
  • Wellbore Fishing & Rental Tools, LLC
  • Archer Limited
  • $51.50
  • Electrochem Solutions, Inc.
  • Ultralife Corporation
  • $50.00
  • Pioneer Custom Electrical Products Corp.
  • Voltaris Power LLC
  • $48.00
  • Silver Creek Water Corporation
  • Indiana American Water Company, Inc.
  • $45.00
  • Assets of Micron Industries Corporation
  • Hammond Power Solutions Inc., United States
  • $16.00
  • water and sewer operations in Manville
  • New Jersey-American Water Company, Inc.
  • $6.50
  • Fueling division of Yoshi, Inc.
  • EZFill Holdings Inc.
  • $2.00

 

Source S&P Capital IQ as of 1/17/2025 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. The Wall Street Journal. "Oil Surplus, Spare Capacity to Pressure Prices in 2025." The Wall Street Journal, December 5, 2024.
  2. 2. Rapier, Robert. "U.S. Energy Dominance Continues: Another Annual Oil Production Record." Forbes, December 22, 2024.
  3. 3. Kit Norton. "Nuclear Energy Stocks Enter 2025 On A High. AI Data Centers Need Them, A Lot." Investors Business Daily, Dec. 4, 2024.
  4. 4. Ariel Cohen. “Energy Megatrends: Seeking Energy Security And Reviving Nuclear." Forbes, Dec. 20, 2024.
  5. 5. Utility Dive. "What do Trump’s picks to head Energy and Interior signal for renewables?" Utility Dive, November 21, 2024.
  6. 6. Jarrett Renshaw. "Exclusive: Trump prepares wide-ranging energy plan to boost gas exports, oil drilling, sources say." Reuters, Nov. 27, 2024.
  7. 7. Utility Dive. "IBM acquires Prescinto to bolster renewable energy asset management capabilities." Utility Dive, October 18, 2024.
  8. 8. Business Wire. "Innovex completes purchase of Downhole Well Solutions." Business Wire, December 2, 2024.
  9. 9. Toro, Sergio. "US Data Centers Report for December, 2024." Aterio.io, December 7, 2024.
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