With capex budgets increasing amidst higher costs of capital and regulatory scrutiny, the Utilities sector is at a crossroads with how aggressively to pursue and fund both organic and inorganic growth. The Mizuho Mid-Cap Utilities Conference brought electric and gas utility companies together in New York City to consider the obstacles and opportunities when tapping the financing markets and M&A. #ThisIsMizuho
Live action shot of #energy #mergersandacquisitions banker surveying a target rich environment... Please see here for our latest thoughts on industry consolidation and strategic initiatives: https://lnkd.in/esBTM-wm #capitalmarkets #privateequity
Our latest M&A Outlook report reveals insights for the #Energy & #Resources sector. From navigating megadeals and price volatility to strategies for portfolio consolidation, our report offers valuable insights for investors and industry leaders. Find out more: https://pwc.to/3xybpkE #PwCDealsAU #Deals #MergersandAcquisitions #TransacttoTransform #BusinessModelReinvention #ValueCreation
My colleague Jay Moody, Leader of the US Transaction Advisory Group's Energy & Infrastructure practice, was recently featured in an Infrastructure Investor article titled "To Achieve Maximum Potential, Infrastructure Must Confront its Liquidity Challenges." In the article, Jay emphasizes, "Sellers may not be attaining their desired valuation in the present environment, thus continuation funds have proven instrumental for sponsors to optimize assets and extend their hold beyond the fund's intended life." Check out the full article! https://okt.to/Bm78ij #ESG
Malcolm Moore Financial Times has just written a great article "𝗕𝗣 𝗮𝗻𝗱 𝗦𝗵𝗲𝗹𝗹 𝗴𝗼 𝗯𝗮𝗰𝗸 𝘁𝗼 𝗯𝗮𝘀𝗶𝗰𝘀 𝘁𝗼 𝗯𝗼𝗼𝘀𝘁 𝘀𝗵𝗮𝗿𝗲𝗵𝗼𝗹𝗱𝗲𝗿 𝗿𝗲𝘁𝘂𝗿𝗻𝘀", perfectly capturing the present tension between short and long-term facing oil and gas majors in Europe. >> It is great to see Accela Research views on this topic and the chart on Euromajor emissions performance featured. We are at a cross roads. While today valuations are tied to shareholder distributions "cash" as opposed to earnings growth, this could change, but only if oil and gas companies can be bold enough to execute on low-carbon visions. Interested to hear other investors views (dm or comment). https://lnkd.in/gXtZvCWz #climatefinance #esginvesting #accelaresearch #oilandgas #sustainablefinance #sustainability #climatetransition
Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) has closed a $610 million (£479 million) asset-backed securitisation refinancing. Net proceeds of $592 million will repay ABSIII and ABSV notes and reduce borrowings under the revolving credit facility. The transaction was oversubscribed with $1.7 billion in orders from 18 investors. Sustainable Fitch confirmed the note's alignment with ICMA's sustainability-linked bond principles, supporting Diversified's sustainability strategy. "This transaction marks the eighth ABS since the start of our securitisation program in 2019 and signals the confidence in the Diversified business model from the energy structured finance community as well as with the broader capital markets," said chief executive Rusty Hutson, Jr. He added: "The transaction was well received by both new and existing investors delivering high demand from the largest order book for an oil and gas... More at #Proactive #ProactiveInvestors http://ow.ly/WML2105vlQP
As we enter the second half of 2024, transformative developments are reshaping the energy & resources (E&R) landscape. Our just launched M&A Outlook: #Energy & #Resources Insights delves deep into key trends and investment themes driving the industry, offering insights on how #dealmakers can effectively create value in the year ahead. Learn more here https://pwc.to/3xybpkE #PwCDealsAU #Deals #MergersandAcquisitions #TransacttoTransform #ValueCreation
To cater to corporates that want to own assets on their balance sheets or/and have constraints in minority investments via group captive route, Vibrant Energy has structured a “Power Services Agreement” model for that. To know more about this service, write to us at [email protected] #assetmanagement #balancesheet #investment #VEH #vibrantenergy
With a deep well of cross-sector international transaction expertise, we bring you insights that are finely tuned to the energy landscape. Our dynamic reports offer invaluable insights, complete with the latest global benchmarks. Whether you represent a fund, a government body, a developer, or an investor in the energy sector, our tailored approach ensures you have the strategic information required to make confident decisions in this ever-changing field. Learn more: https://bit.ly/46xzzYr #DealAdvisory #EnergyTransactions Johan Marais
Don’t say it too loudly, but private equity is rethinking its aversion to oil and gas - especially gas. Buyside interest is still dampened by fears of jumping into a super cycle without a clear way out again (not to mention how to square the ESG angle with an investment committee) but an attractive transaction window has emerged for those with an appetite for highly cash generative businesses. Investing into a cyclical market that faces a backdrop of shifting policy and regulatory levers and is not for the faint hearted. That said, several sponsors are now factoring into their thinking that the investible lifespan of the industry will far outlive their holding period. Importantly, in all but the most climate-conscious demand scenarios it would also outlive the holding period of the subsequent investor – so a business acquired now should, theoretically, find a ready buyer pool in five years’ time. However, the fact that assumptions around demand can shift so dramatically demanding on geopolitical direction of travel will continue to deter many from re-entering the oil and gas market, which results in two outcomes for those who are willing to invest. Oil and gas-related acquisitions will remain good value for money from a transaction multiple standpoint, and those investing will need to have a clear view on the long-term market outlook and commercial positioning of new portfolio companies. The best way to understand those market, commercial and technical dynamics is to talk to Calash. #oilandgas #energytransition #privateequity #duediligence
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Back to basics. Looks like return on capital of oil&gas is hard to beat and thus oil&gas companies are again sticking to what they know. There will likely be a change in strategy to reach 2030 goals where they rather purchase the more successful renewable companies/technology with a proven track record. My best guess is that increased acquisitions will happen in 2027-2029. https://lnkd.in/dnt9MDEj
