After a significant round of selling, re-funded private equity teams are ramping back up their hunt for assets and expanding the search for opportunities in an increasingly consolidated shale landscape. That is leading teams away from the core of plays where they have seen past success as they look for more attractively priced entry points. Last week, Reuters reported Validus Energy has a deal in place to buy Warburg Pincus-backed Mid-Continent producer Citizen Energy III for more than $2 billion, making it one of the largest deployments of private capital in the last few years. The Mid-Continent is one of the areas getting a close look from private equity firms as poor outcomes in a previous bout of buying left public companies skittish on redeploying capital into the region. The Citizen assets, with the main operated position in the Merge area of the SCOOP-STACK, featured in several deals during that time. Citizen II contributed its assets to a JV with Linn Energy to form Roan Resources in 2017. The company achieved a public listing in late 2018 but was taken back private by Warburg as Citizen III in 2019 after about an 11-month public run that saw the equity lose about 90% of its value. After holding the portfolio company for five years—pretty typical for a PE commitment—Warburg has found a buyer in Validus.
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Stock Ticker: ITRI (Itron Inc.) Current Price: 115.52 Profit Margin: 9.37% Total Cash (mrq) 982.51M 50 Day moving avg 104.13 Sources: TipRanks Yahoo Finance ***This is for informational purposes only. The information presented is not financial advice, and you should not consider it to be financial advice. You should always seek appropriate financial advice from a professional financial advisor in your state.***
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Our partners Sally Davis, Jessica T. Murray and Bob Rivollier attended the Infralogic Investors Forum in New York at the end of last week. Here are some of their key takeaways from the event, which included interesting discussions on the need for structured deals to bridge buyer-seller expectations, the increasing demand for power, the potential of asset-backed securitization for digital infrastructure, the growth of the data center market, and the continued reliance on fossil fuels. #InfrastructureInvestment #EnergyTransition
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Q2 saw $30.2 billion of U.S. upstream deal activity, according to Enverus M&A Analytics, led by a $22.5 billion public company combination that continued a remarkable wave of E&P consolidation and highlighted the trend’s expansion beyond the Permian core. While both ConocoPhillips and Marathon Oil are active in the Delaware Basin, their transaction opens considerably more running room for Conoco elsewhere, particularly in the Eagle Ford. Rounding out Q2’s billion-dollar-plus deal tally was another public company combo in the Eagle Ford—Crescent Energy’s $2.1 billion SilverBow Resources acquisition—and private equity exits by two EnCap portfolio companies: Ameredev II in the Delaware Basin for $1.9 billion and XCL Resources in the Uinta Basin for $2.55 billion. Including July’s $5 billion Devon Energy-Grayson Mill Energy deal in the Bakken and $1.1 billion takeout of PE-backed Point Energy Partners by Vital Energy and Northern Oil & Gas, 12 deals valued at $1 billion or more have been announced YTD, putting 2024 on track to outpace last year’s high-water mark of 19 such deals. In addition, the average value for transactions of $100 million or more in 1H24 was $3.84 billion, on par with 2023’s average of $3.81 billion and more than tripling the previous six years’ $1.14 billion average.
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Taiwan boosts credit guarantees on offshore wind financing 04 Dec 2024 by Celine Ge The Taiwanese government plans to increase the maximum proportion of state credit guarantee coverage on offshore wind project financings to 80% from 60%, according to a government statement yesterday. The island’s economic affairs ministry said the move is intended to promote the participation of more state-owned banks and other financial institutions into the financing of offshore wind projects in Taiwan, which could translate into a combined financing demand of TWD 1.08trn (USD 33bn) during 2026-2031. The total size of state credit guarantees on the island’s offshore wind project financings amount to TWD 90bn, with about TWD 80bn still untapped, according to the statement. Such state credit guarantees will make it easier for projects to secure debt from banks. In addition, the government will also grant credit guarantees to companies that sign long-term power purchase agreements with offshore wind farms, with the maximum amount being 80% of the total money the company commits to pay for the offshore wind electricity. The economic ministry expects such guarantees will encourage more domestic companies to purchase renewable energy as part of their efforts to achieve net zero emissions. The Taiwanese government in July last year said it planned to provide credit guarantees covering green electricity corporate power purchase agreements to boost the bankability of offshore wind farms. #offshorewind https://lnkd.in/gPcR4wR7
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GE Vernova (NYSE:GEV) has been on a tear, doubling since its split from GE (GE). This is partly due to optimism that the electric energy demand scenario can drive revenue and partly due to the company's turnaround execution, which looks to increase the EBITDA margin from 2% to 13% by 2027. When I initially covered GEV, I rated it a buy with a US$246 price target to YE25, which has now revised up to US$434 +26% upside potential. #geveranova #investing https://lnkd.in/eZwgkww2
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As data centres draw an ever-increasing amount of energy from the grid, fund managers are positioning themselves to benefit from the investments being made to keep up with demand, writes Hannah Williford 🔗 Read the full 'Power grab' article in the latest PA magazine issue: https://lnkd.in/en4pNcWf #fundmanagement #wealthmanagers #investmenyopportunity #PAmagazine
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Independent Non Executive Director / ILA certified The views expressed are mine solely.
An update on a favourite topic of mine for many years… 55% of the total number of funds available in Europe(35900 of them) had AUMs below 100 million Euros and in total represented 5% of funds assets under management. At the other end of the spectrum 3000 funds with over 1 billion Euros in AUM represented a total of 60% of overall assets under management. Product proliferation continues to be a topic on the industry agenda… With the rise of passive ( over one third of AUM in Europe) there is a growing case to cut drastically the number of funds available to investors as the much smaller ones cannot realistically produce satisfactory outcomes for investors due to their minimal size… Source : Broadbridge & Ignites Europe data as of June 2024 Many thanks Ed Moisson for this interesting piece of news!
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M&A/Corporate Finance/Infrastructure, Renewables, Energy Transition/ Non Executive Director/ex Investment Banker
🌟🚀 At Centrus we are leading the way in guiding clients through trading financial power hedges (derivatives) with top financial institutions and energy traders. These hedges are crucial for managing the unpredictable swings in energy prices due to geopolitical and environmental changes. 💹🌍 Ensuring stable energy costs and revenues is now more important than ever for our clients, including major energy consumers and providers. 📞 Want to learn more about how energy hedging can benefit you? Reach out to me directly to discuss how we can help secure your energy-related costs and revenues! #EnergyHedging #FinancialHedges #RiskManagement #EnergyMarket #Centrus
Financial hedges offer a key solution for managing ongoing energy price volatility arising from geopolitical and environmental risks; certainty of energy-related costs or revenues has become paramount for many of our clients, including both large energy users and generators. Centrus has been at the forefront of advising clients on trading financial power hedges (derivatives) with financial institutions and energy trading companies. Here are 4 key benefits to consider: 1️⃣ Price Advantage: Financial hedges often offer superior pricing compared to traditional Power Purchase Agreements (PPAs), resulting in significant cost savings per MW over a 7-10 year period. 2️⃣ Agility in Execution: By addressing security, structure, and ISDA documentation upfront, financial hedges enable expedited execution, even on the same day, providing flexibility to act swiftly in volatile markets. 3️⃣ Flexibility in Tenor and Product: Financial hedges provide greater flexibility in hedging duration and seasonal targeting, allowing for tailored solutions to meet specific needs compared to standard PPAs. 4️⃣ Accounting Benefits: Financial hedges have a proven track record of eligibility for hedge accounting treatment, deferring changes in fair value through other comprehensive income (OCI), providing stability and avoiding profit and loss volatility. Ready to learn more? Contact Adam Macdonald, Myrto Charamis or Ivan McKinlay, CFA for more information. Click here to read our full article: https://lnkd.in/gEhNaj4n #Hedging #Derivatives #PowerHedging #FinanceWithPurpose
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