Summary

Industry | Market Insight And Select Recent M&A Activity

Our Latest Insights: Oilfield Services Attracting Attention

U.S. exploration and production (E&P) companies are striving to maintain efficiency and capital discipline as activity levels recover from recession lows. That’s benefiting oilfield services providers, particularly those with differentiated approaches to boosting productivity.

Get Managing Director Luke Semple’s latest thoughts on this emerging opportunity here.

M&A:

Peak Utility Services, a leading provider of recurring maintenance, repair and installation services to natural gas, electric and telecommunications infrastructure, has been acquired by ORIX Capital Partners. Peak is the parent company to Track Utilities, SiteWise and Kelly Cable. The Company was previously a portfolio company of CIVC Partners. HW&Co. served as the exclusive financial advisor to Peak.

Source

M&A:

Drillinginfo, a provider of integrated software, data, and analytics solutions to the global energy market, is being acquired by Genstar Capital. Drillinginfo is a portfolio company of Insight Venture Partners. HW&Co. served as the exclusive financial advisor to Drillinginfo.

Source

M&A:

ProAct Services, a leading provider of customized, on-site groundwater and soil treatment solutions, hydrostatic water treatment and tank degassing solutions, has been acquired by Evoqua Water (NYSE: AQUA). The Company was previously a portfolio company of Hammond, Kennedy, Whitney & Company.

Public Markets | Key Trading Statistics1

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What We're Reading

Energy | New Energy Outlook 2018 Energy

“Since the 1970s, fossil fuels have commanded a consistent 60-70% share of the global power generation mix. This 50-year equilibrium is shifting, as cheap renewable energy and batteries fundamentally remake electricity systems around the world. $11.5 trillion is anticipated to be invested globally in new power generations capacity between 2018 and 2050, with $8.4 trillion set aside for wind and solar.  Wind and solar are set to surge to almost “50 by 50” – 50% of world generation by 2050 – on the back of precipitous reductions in cost, and the advent of cheaper batteries that will enable electricity to be stored and discharged to meet shifts in demand and supply.”

Bloomberg

Oil & Gas | Permian Oil And Gas Takeaway Capacity On Horizon

“Permian oil production, according to EIA data, hit 3.2 million bbl/d in early May. Current projections call for output to continue to rise to 3.6 million bbl/d by the end of 2018, and to reach as high as 5.3 million bbl/d in 2020. On the takeaway side, current pipeline capacity available for Permian producers to transport oil out of the basin equaled 2.8 million bbl/d in 1Q 2018. With several major projects planned and put in service, total transportation capacity should rise to as high as 5.8 million bbl/d by the end of 2020 and will balance the supply/takeaway equation.”

DrillingInfo

Downstream | Refiners Reaping Benefits From Digital Technology

“Refiners are reaping benefits from deploying digital technologies, but haven’t unlocked the full value yet. In a recent study, nearly half (48 percent) of refiners rate themselves as “mature” or “semi-mature” regarding deployment of digital technology in their organization, up 44 percent from 2017. One-third of respondents said that digital technologies are adding more than $50 million in value to their business. However, refiners are currently reaping just a fraction of the value that digital can yield. The next step will be to combine and deploy multiple technologies at scale to totally reinvent business processes and drive plant-wide transformational change.”

RigZone

Oil and Gas | Linking U.S. Natural Gas Production Expansion To Global LNG Markets

“As U.S. LNG exports play an increasing role in the global market, the U.S. will not only be exporting its vast natural gas supplies but also to a degree its market realities — namely, the risks, opportunities and, at times, volatility of a highly liquid, fungible and economically-driven spot market. The global LNG market also has shifted toward more flexible and spot-oriented trade, opening the window for some ad lib wheeling and dealing based on the prevailing economic conditions at any given time. These two factors together will come with significant implications across the supply chain — from the producing basins to the pipeline transport routes and from the export terminals to the destination markets served.”

RBN Energy

Renewables | 2018 Global Status Report

“The year 2017 was another record-breaking one for renewable energy, characterized by the largest ever increase in renewable power capacity, falling costs, increases in investment and advances in enabling technologies. Many developments during the year impacted the deployment of renewable energy, including the lowest-ever bids for renewable power in tenders throughout the world, a significant increase in attention to electrification of transport, increasing digitalization, jurisdictions pledging to become coal-free, new policies and partnerships on carbon pricing, and new initiatives and goals set by groups of governments at all levels. Strong growth continued in the renewable power sector, while other renewable sectors grew very slowly. Solar photovoltaic (PV) capacity installations were remarkable – nearly double those of wind power (in second place) – adding more net capacity than coal, natural gas and nuclear power combined.”

Ren21

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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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