Summary

Industry | Select Recent M&A Activity

M&A: Restoration and Recovery, a provider of above and below ground stormwater environmental compliance services serving the commercial, retail, industrial and government end markets, has been acquired by DFW Capital. HW served as the exclusive financial advisor to Restoration and Recovery.

Source

M&A: Digital Traffic Systems, a provider of maintenance services to road-side electronic devices tracking traffic has been acquired by DBi Services, a portfolio company of Sterling Partners.

Source

M&A: First Reserve has acquired Dresser Natural Gas Solutions, a global equipment manufacturer of commercial and industrial natural gas meters and pipeline repair products. Dresser was previously a division of Baker Hughes, a GE company.

Source

M&A: Nolan Power Group, a provider of stationary power management solutions has been acquired by High Road Capital Partners.

Source

Public Markets | Key Trading Statistics1

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What We’re Reading

Downstream | Increased Pipeline Capacity Coming To West Texas

“Bottlenecks have become a problem in the Permian Basin of Texas and New Mexico at the center of the shale boom. Drillers are pumping so much oil and gas that pipelines considered more than adequate just a few years ago now are overwhelmed. That is creating opportunity for pipeline builders, who are planning an array of new oil and gas conduits in Texas, where they see increased demand from customers willing to pledge to contracts. Some analysts, though, say the new pipelines could face delays and increased costs, but compared to parts of the U.S., where regulatory hurdles and local activism have made it challenging to complete projects, Texas is more amenable to new pipelines.”

Wall Street Journal

Energy | Significant Investment In Clean Energy Generation

“There may be a trillion-dollar opportunity in U.S. renewable energy. The phenomenally abundant mix of wind, solar and other renewables makes the U.S. one of the most likely places in the world for more investment. The major investors in renewables are ready to up their commitment. In return, U.S. policymakers must commit to policies like increased mandates for renewables and energy storage that will keep renewables on a level playing field with other generation resources when the federal tax credits now driving growth expire in the early 2020s.”

Utility Dive

Downstream | Labor Market In Permian Forces Operators To Focus On Retention

“The lure of high wages and bustling activity are bringing workers to the Permian in droves. It seems companies can’t get workers in the field fast enough to keep up with the latest shale boom in West Texas. And in the cities of Midland and Odessa, unemployment rates reflect that. Currently, Midland’s unemployment rate is 2.1 (the lowest in the state) while Odessa’s is 2.8 (among the top 10 lowest in the state). Some companies are placing as many as 300 to 400 people a month a jobs in the area to keep up with current demand, and as such, oil and gas professionals from all over the country have flocked to West Texas to take advantage of the robust sector.”

RigZone

Renewables | The Shift To Renewables Needed Before 2035

“As cities and universities roll out plans to transition their operations to green power and renewable energy, 2035 is emerging as a common finish line for carbon neutrality. The problem? We don’t have that kind of time. The simple truth is that cities and universities have both environmental and economic imperatives for implementing their renewables plans on a much shorter timeline. Thanks to price data transparency and the aggregation of energy projects, emerging marketplaces for renewable energy are making the adoption of renewables plans faster and easier than ever before.”

Utility Dive

Energy Management | Top 10 Utility Regulations Of 2018 – So Far

“With half of 2018 already in the rearview mirror, top public utility commissions (PUCs) have implemented several actions and regulations that are affecting customers and utility service companies. 2018 has continued the trend in recent years toward a cleaner grid, with more utilities announcing coal plant retirements and large investments in renewable energy. the challenges PUCs are grappling with are diverse: moving toward a cleaner grid, adopting foundational electric vehicle policies, investigating utility business model reforms, exploring the integration of new technologies such as energy storage, and increasing customer choice when it comes to sourcing their energy, just to name a few.”

GreenTech Media

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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Trailing Twelve Months

(Indexed to 100%)

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Rig Counts3

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Construction Spend4

Non-residential U.S. Construction Spend

Seasonally Adjusted Annual Rate ($ in Millions)

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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.

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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