Summary

Industry | Select Recent M&A Activity

  • M&A: CPower, a leading provider of energy management and demand response services has been acquired by LS Power. CPower was a portfolio company of H.I.G. Capital. Harris Williams served as the lead advisor to CPower.

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  • M&A: Inland Pipe Rehabilitation, a leading provider of trenchless pipe rehabilitation solutions and technology to the municipal wastewater and storm water markets is being acquired by J.F. Lehman & Company.

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  • M&A: Environmental Management Specialists, a leading provider of emergency response, remediation, and environmental services is being acquired by HEPACO. HEPACO is a portfolio company of Gryphon Investors.

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  • M&A: CARBER, a leading provider of specialty industrial services including cut, isolation, and weld testing services is being acquired by HydrochemPSC. HydrochemPSC is a portfolio company of Littlejohn & Co.

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  • M&A: On Call Power, a leading provider of maintenance and repair services to industrial generators and backup power solutions is being acquired by Genserve. Genserve is a portfolio company of GenNx360 Capital.

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  • M&A: Polaris Services, a leading provider of location and trenching services to midstream oil & gas, utility, and commercial construction companies is being acquired by Vecta Environmental. Vecta Environmental is a portfolio company of Cotton Creek Capital.

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  • M&A: NTI Connect, a leading provider of mission-critical network deployment solutions in fiber optics, data centers, wireless, and video networks is being acquired by ORIX Capital Partners.

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Public Markets | Key Trading Statistics1

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What We’re Reading

Oil & Gas | America's Oil and Gas Reserves Double with Massive New Permian Discovery

“America’s energy security just got a lot more secure. Located in the Wolfcamp Shale and overlying Bone Spring Formation, the unproven, technically recoverable reserves are officially the largest on the planet. But curiously this story isn't making waves in the mainstream media. Nearly one third of the United States’ crude already comes from the Permian, making it the largest shale-oil producing region in the country. While numerous studies have been conducted on the Permian's half-dozen sub-basins and their many overlapping formations, this represents the first comprehensives USGS assessment of continuous resources in Wolfcamp and Bone Spring within the Delaware Basin. And the findings are truly incredible. The USGS estimates that over 46 billion barrels of oil, 280 trillion cubic feet of gas, and 20 billion barrels of natural gas liquids are trapped in these low-permeability shale formations. To better understand just how staggering these numbers are, think about this: at the end of 2017, total U.S. proven reserves of crude oil hovered around 40 billion barrels. For natural gas, figures stood around 465 trillion cubic feet (tcf). The new upward revision of Permian resources represents a more than 100% and 65% increase in U.S. oil and gas reserves, respectively, if they can be extracted economically. ”

Forbes

Energy Efficiency | Renewables are Getting Cheaper but Energy Efficiency, on Average, Still Costs Utilities Less

“New data shows that energy efficiency–the kilowatt-hours we avoid by eliminating waste–remains, on average, our nation’s least-cost resource. Efficiency also delivers a host of other benefits. It improves electric grid reliability and resilience, can target savings where and when needed the most, creates jobs, spurs other economic development, reduces customer utility bills, makes homes and buildings more comfortable, and reduces harmful pollution. The good news: Utilities are increasing efficiency investments, helping their customers use energy more efficiently, and meeting demand by saving energy rather than generating it. A recent LBNL analysis projects, in its medium case scenario, that utilities will increase efficiency investments from $5.8 billion in 2016 to $8.6 billion in 2030, a jump of more than 45%.”

ACEEE

Utilities | Cities are Prioritizing Electrification, but Grid Modernization is Required

“The electrification trend is one that is gathering momentum across cities, including in transportation. At a conference this month hosted by the Edison Electric Institute (EEI), an industry expert warned that while electrification will help cities cut emissions in areas like buildings and transportation — the major causes of pollution and emissions — it will have a "huge amount of demand on power" and require modernization and better use of data to cope. Cities were built when populations were a third or a quarter of what they are in most of these big cities today. And as vehicles and other pollution sources electrify, they should work on data-driven and modernized systems to help reliability. Such issues have plagued electric buses at times, so while electrifying fleets has been a bit point of emphasis for American cities, they must also balance that priority with ensuring there are fewer maintenance problems. The U.S. has an opportunity to deliver that future but in a way that works properly.

Utility Dive

Oil & Gas | EIA Says US Domestic Oil Production Rising Despite Lower Prices

“The U.S. government left its forecast for domestic crude production unchanged for 2019 even with prices averaging almost $11 a barrel lower than its previous estimate. Oil producers will pump an average 12.06 million barrels a day next year, up from 10.88 million in 2018, the Energy Information Administration said in a monthly outlook. While bottlenecks in areas such as the Permian Basin of West Texas and New Mexico pose a risk to future growth, new pipelines coming online in late 2019 and 2020 should ease that congestion. The U.S. will account for almost one-fifth of global petroleum liquids output next year. The agency also raised its global demand forecast for next year to 101.61 million barrels a day from 101.51 million. In the U.S., almost half of the growth next year will come from gas liquids, with gasoline demand rebounding from a decline this year.”

Rigzone

Alternative Energy | Think Wind Is Mature? Reports Show Tech Investments Are Increasing Growth

“Technology investments will help the wind industry add more than 680 gigawatts of capacity worldwide in the next decade, according to two reports this month. The studies, from the analyst firm Wood Mackenzie Power & Renewables, show how the industry could easily more than double the 539 gigawatts of capacity installed worldwide at the end of 2017, based on World Wind Energy Association figures. Wood Mackenzie predicts original equipment manufacturers (OEMs) will invest heavily in measures to bring down the levelized cost of electricity (LCOE) of wind as developers face decreasing returns from a rise in auctions. After cutting the average selling price per megawatt by 28 percent since 2010 and increasing annual energy production per megawatt by 50 percent over the same period, OEMs are now focused on getting wind’s LCOE to under $34 per megawatt-hour, Wood Mackenzie believes. While the shift away from generous incentive mechanisms leads to a short-term market dip, the forecasted growth over the next decade makes the market ripe for innovation.”

Green Tech Media

M&A Transactions

Recent M&A Transactions1,2

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Public Markets Overview

Energy 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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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

Power

  • Power Products and Technologyscreen_shot_2019-01-21_at_2.16.01_pm.png
  • 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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