Select Recent M&A Activity

W.A. Chester, a Lanham, MD-based provider of above and underground utility construction services and portfolio company of the Exelon Corporation [NYSE: EXC], a Chicago, IL-based utility services holding company engaged in the energy generation business has been acquired by Bernhard Capital Partners, a Baton Rouge, LA-based private equity firm.
Source | Instapaper

SoCore Energy, a Chicago, IL-based company engaged in the design, development, financing and installation of commercial photovoltaic solutions, and portfolio company of Edison International [NYSE: EIX], a Rosemead, CA-based electric power generator, distributor and structured finance provider has been acquired by ENGIE North America, a Houston, TX-based energy project manager.
Source | Instapaper

Urban Energy Solutions, a Phoenix, AZ-based HVAC controls and electrical contracting provider has been acquired by Midstate Holding Corporation, a Phoenix, AZ-based energy efficiency construction company and portfolio company of Bow River Capital Partners, a Denver, CO-based private equity firm.
Source | Instapaper

Primoris Services Corporation [NASDAQ: PRIM], a Dallas, TX-based provider of construction, fabrication, maintenance, replacement, wastewater, and engineering services is acquiring Willbros Group, Inc., a Houston, TX-based provider of engineering, construction, maintenance, repair, and restoration solutions.
Source | Instapaper

Public Markets

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What We're Reading

ENERGY | GLOBAL ENERGY DEMAND GREW IN 2017

International Energy Agency - March 22, 2018

“Global energy demand rose by 2.1% in 2017, more than twice the previous year’s rate, boosted by strong global economic growth, with oil, gas and coal meeting most of the increase in demand for energy, and renewables seeing impressive gains. As a result of these trends, global energy-related carbon dioxide emissions increased by 1.4% in 2017, after three years of remaining flat. While most major economies saw a rise, others – the United States, the United Kingdom, Mexico and Japan – experienced declines. The biggest drop in emissions came from the United States, driven by higher renewables deployment.”
Read the full article here

OIL & GAS | ‘NETFLIX FOR OIL’ SETTING STAGE FOR DATA BATTLE

Rigzone - March 19, 2018

“A battle for big data is brewing in the oil patch. The service companies that map underground pockets of oil, drill the wells and lift crude from miles below are generating vast new amounts of data they never before realized could be valuable. But their exploration customers are essentially saying hands off to anything coming out of their wells, including the streams of zeros and ones. Transforming to a digital oil field could add almost $1 trillion to the world’s economy by 2025, according to a 2015 study by Oxford Economics and Cisco Consulting Services.”
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DOWNSTREAM | SHIPPING FUEL SWITCH COULD DRIVE RICH REWARDS FOR DOWNSTREAM OPERATORS

Rigzone - March 21, 2018

“Ready the cash-printing machines -- the world’s most sophisticated refineries are about to enjoy great times thanks to what might seem like a minor tweak in rules for the type of fuel ships consume. From 2020, vessels must buy fuel with less sulfur, or alternatively be fitted with equipment to curb sulfur emissions which only a tiny fraction of the merchant fleet currently have. That’s fantastic news for complex plants that already have the capacity to produce marine gasoil, and the anticipated shift is already starting to appear in futures prices.”
Read the full article here

UTILITIES | COMING SOON: THE AMAZON OF ENERGY

The Energy Collective - March 16, 2018

“The energy sector has not yet been conquered by a platform giant like Amazon, Spotify or Facebook. There are reasons why this will happen soon. The only question is, who is going to be first? Platforms like Amazon, WhatsApp, Spotify and Facebook have taught us over the last few years that size matters. Once such a business reaches a certain scale, it produces customer benefits that cannot be matched by smaller platforms. Such a platform requires two factors: a trusted customer-facing platform and a back-office platform that combines the purchasing and trading of energy with the management of customer demand.”
Read the full article here

INFRASTRUCTURE | MICROGRIDS: THE RESILIENT ENERGY INFRASTRUCTURE

Utility Dive - March 20, 2018

“The National Academy of Sciences defines “resilience” as the ability to prepare and plan for, absorb, recover from, and more successfully adapt to adverse events. The energy industry has been working overtime to better define resilience. For many in the energy industry, Super Storm Sandy in October 2012 was the galvanizing event, the moment when “resilience” first entered the lexicon. Knocking out power to 8.1 million customers in 21 states, Sandy’s one-two punch of storm surge and strong winds in New York and New Jersey seemed to crystallize the inherent vulnerability of energy infrastructure, vividly demonstrating how extreme weather could endanger communities, shut down the economy and generate insurance losses nearing $70 billion. With no signs of weather risks abating, microgrids are increasing in value due to the full range of services and attributes they provide to the grid at all levels.”
Read the full article here

M&A Transactions

Recent M&A Transactions 1,2

Public Markets Overview

Energy Equipment and Services1


Power Equipment and Services1

Infrastructure Services1

Industry Statistics

Commodity Prices1

Rig Counts3

Construction Spend4

Construction Indicators5,6

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










1.    FactSet.
2.    MergerMarket.
3.    Baker Hughes.
4.    U.S. Department of Commerce
5.    American Institute of Architects
6.    Dodge Data & Analytics