Market Monitor

As part of our ongoing Market Monitor series, Energy Advisors Group highlights the role of traditional energy firms in the race for more power for AI and Data Centers. The reports continue our thought leadership content leveraging our decades of experience.

Our initial report focused on the role of SuperMajors, and we follow up with opportunities for Midstream companies. We also bring attention to the role of coal generation sites. Not only has coal escaped a death sentence, but there is a wave of coal-to-gas conversions underway - the obvious benefit being that they are already connected to the grid.

We also write about BP's sale of a NonOp interest in its Permian and Eagle Ford midstream assets to asset manager Sixth Street. This is flagged as a reminder that midstream assets owned by E&Ps can be sold at higher multiples than traditional oil & gas assets. This is simply another lever E&Ps can pull to create value.

Here’s Three Quick Takeaways —

• Midstream Companies Increasingly Integral to AI Power Build
• Adding capacity to deliver more gas, sometimes directly investing in power.
• Pipeline giants are exploring deals in utility projects.
• Williams is one of the largest names already with >$5B allocated to 3 power gen projects.
• Energy Transfer already building eight 10MW facilities.
• Coal Escapes Death Sentence
• Coal-fired assets experiencing a renaissance with coal-to-gas likely picking up steam.
• Homer City coal site outside of Pittsburgh expects 4.4GW conversion complete in 2027.
• Conversions can cost $700K to $1MM per MW vs. $2MM to $2.5MM for new gas-fired.
• Private Equity actively investing in coal plants.
• A&D - Like the NFL Trade Deals, Oil & Gas A&D Heated Up In Early November
• In just 5 weeks into 4Q, 15 upstream deals (>$10MM) surpass all of 3Q by 35%.
• Midstream also sees BP selling Permian and Eagle Ford NonOP to Sixth Street for $1.5B.
• Interesting upstream deals include:
• SM agrees to merge with Civitas ($7.7B value for CIVI).
• Ovintiv Says Transformation Complete with $2.7B NuVista buy (Putting For Sale on Anadarko).
• Permian Resources Does ~250 Deals for $180 MM (Eddy, Lea Co., NM).
• Amplify Cleans House (Sells all but Offshore California, Wyoming assets).
• Crescent Sells Non-Core for $700MM+ (most, $400MM+ goes to Aethel for WY EOR).

Below are 3 excerpts from the Monitor.

Page 1 "Pipe Dreams" gives perspective to the role of Midstream Companies as a key to faster power -----

Page 2 "Irony Unplugged" highlights the renaissance of coal generation sites -----

Page 3 updates you on some interesting upstream deals -----

The FULL 8-page report is available for download to the right.

Energy Advisors Group is working hard to expand our thought leadership leveraging our decades of industry expertise. We look forward to providing additional market insight for our clients through Market Monitor, Regional Perspectives, Deal Alerts and Quarterly M&A Outlook. 

Our firm has been serving the needs of buyers, sellers and capital providers for over thirty-five years. We stand ready to assist asset owners in a competitive divestment process and to help buyers find off-market strategic assets for their portfolio. Call Rich Martin at 214-744-2495 or email rmartin@energyadvisors.com for a private consultation.

TO LEARN MORE:

Blake Dornak

Vice President

Phone: 713-600-0169

– Email: bdornak@energyadvisors.com

Brian Lidsky

Director-Research & Special Projects

Phone: 713-600-0138

– Email: blidsky@energyadvisors.com

IF YOU NEED ASSISTANCE downloading the full report or creating a login into our platform , contact:

Stephanie Epps

– Email: stephanie@energyadvisors.com

This article is for informational purposes only and not intended as financial advice. Please conduct your own research before investing.