Summary

Industry | Select Recent M&A Activity

M&A: Power Team Services, a leading provider of maintenance and construction services to the U.S. utility industries, is being acquired by Clayton, Dubilier & Rice. HW served as the exclusive financial advisor to Power Team Services.

Source

M&A: Optim Earth, a provider of on-demand 3-D subsurface information required to plan and build structures, roads, bridges, tunnels and pipelines, has been acquired by RoadSafe Traffic Systems, a portfolio company of ORIX Capital.

Source

M&A: B&V Testing, a provider of testing and certification, environmental monitoring and decontamination services for clean rooms, has been acquired by Cantel Medical.

Source

M&A: Donnelly Mechanical, a leading contractor of mechanical and energy services, has been acquired by ENGIE North America.

Source

Public Markets | Key Trading Statistics1

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What We’re Reading

Oil & Gas | Changing Supply And Demand Balance Spurs Midstream Investments

“The 'shale boom' along with other factors has increased the competitiveness of the U.S. refining industry.  Taken together, these major developments have significantly altered the supply/demand balance and trade flows of both crude and refining products in the U.S.   This is particularly evident in the nation’s (and world’s) largest refining complex along the U.S. Gulf Coast (USGC). Incentivized by this changing environment, significant investment is being made in both the midstream infrastructure and refining systems on the USGC.”

Turner Mason

Renewables | Utility Scale Solar: An Offer Utilities Cannot Refuse

“New numbers show the friendship between utilities and solar is growing and bringing the U.S. power system's transition to higher renewables penetrations along. Utilities of all kinds and in many places are accelerating from zero to 100 on solar in response to record-low prices. Contrary to the word from Washington, D.C., utility-scale renewables do not threaten grid reliability and national security, but rather will utterly reshape the electrical grid around cheap wind, solar and batteries by 2050."

Utility Dive

Downstream | Operators Shift Focus To Water Management In The Permian

“With fracking, explorers blast water, sand and chemicals down wells to crack open the oil-bearing shale below. As oil is pumped up, so is the water, combined with salt-laden water from underground reservoirs to create a toxic mix that would devastate farmland if released on the surface. With as many as four barrels of water produced for every barrel of oil, spending on water management in the Permian Basin is likely to nearly double to more than $22 billion in just five years. The reason is twofold. The rig count is rising, and many of the "workhorse" disposal formations used for decades are starting to fill up”

RigZone

Oil & GAs | U.S. Shale Operators Prepped To Spend More To Produce More

“Second quarter 2018 results recently released by US E&P operators signaled higher expected capital investments and oil production growth from US shale than guided in early 2018. While selected operators increased yearly capital budgets by around 8% on average during 2Q, oil production volumes were revised upward by only 1.4%. This disconnect might suggest that the shale industry requires more capital than before to achieve healthy production growth. In fact, while a part of increased spending is due to service cost inflation, a significant part of the incremental budget is also planned to be used for additional drilling throughout 2H 2018 to support more intensive completion activity and production growth in 2019.”

Rystad Energy

Energy | U.S. Electricity Demand Poised To Increase

“Since The Great Recession that started in 2007, one of the biggest energy stories has been the flattening of U.S. electricity demand. For more than a decade now, power consumption has been stuck right at around 4 trillion kilowatt hours per year. There's no question that the once very strong link between U.S. economic growth and new energy intensity has weakened considerably as one unit of GDP doesn't need to be supported by an equal one unit of energy input. Yet, for electricity, the most indispensable and convenient form of energy, a significant uptick in demand is virtually assured. Rumors that new U.S. electricity demand will be insignificant is supported by the false notion that less established and intermittent sources of power alone can satisfy energy needs. As the U.S. seeks "deep electrification" across the economy, the clear need for more electricity will surely help all sources of power.”

Forbes

M&A Transactions

Recent M&A Transactions1,2

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Public Markets Overview

Energy Equipment And Services1

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Power Equipment And Services1

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Infrastructure Services1

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Industry Statistics

Commodity Prices1

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Rig Counts3

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Construction Spend4

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Construction Indicators5,6

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ABI:  Derived from the AIA’s monthly Work-on-the-Boards survey, an index score above 50 denotes increased billing from prior month, and vice versa.

DMI: 12-month indicator of future construction spending and demand for construction products / services

Our Group

Harris Williams is a leading advisor to the energy, power, and infrastructure M&A market.  Our Energy, Power & Infrastructure Group has experience across a broad range of sectors, including services, products, and technologies that support or enhance energy and power infrastructure.

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  • Oil & Gas Equipment and Services
  • Coal Products and Services

 

 

 

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  • Power Products and Technology
  • Electric and Natural Gas
  • Transmission and Distribution
  • Energy Efficiency and Clean Technology
  • Renewable Energy Services and Equipment

 

 

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  • Industrial and Infrastructure Services
  • Engineering and Construction
  • Environmental Services

Public Comparables1

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1. FactSet

2. MergerMarket

3. Baker Hughes

4. U.S. Department of Commerce

5. American Institute of Architects

6. Dodge Data & Analytics

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