Mark Gandy

The U.S. mergers-and-acquisitions market is expected to have another banner year in 2025, with the overall number of deals worth at least $100 million projected to rise 10% from this year’s level, according to the newly released EY-Parthenon Deal Barometer. The private equity market is expected to be particularly hot next year, with 16% more transactions than in 2024. Corporate M&A activity is anticipated to grow by 8%. https://lnkd.in/gK3Q7ApD

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The potential re-entry of National Oil Companies (NOCs) into the merger and acquisition (M&A) landscape represents a significant shift in the global energy sector. Here are some key insights and implications based on the information provided: Strategic Context 1. Historical Context: • M&A Activity Decline: NOCs’ spending on international M&A has significantly declined from over $30 billion annually between 2009 and 2013 to less than $5 billion annually since 2019. Their share of global M&A spending has dropped from nearly 50% at its peak to less than 5% today. • Market Dynamics: This decline can be attributed to various factors, including market volatility, geopolitical risks, and a strategic shift towards domestic investments and cost management. 2. Current Market Conditions: • Attractive Valuations: The current market presents attractive valuations for potential acquisition targets, making it a favorable time for NOCs to consider M&A activities. • Financial Strength: NOCs’ financial ratings are at all-time highs, providing them with the financial capability to pursue strategic acquisitions. Motivations for Re-Entry 1. Portfolio Diversification: • Diversification Needs: Middle Eastern NOCs, in particular, have portfolios heavily concentrated in domestic oil or gas. Diversification through international acquisitions can mitigate risks associated with over-reliance on a single resource or geography. • Examples: Saudi Aramco and ADNOC’s ventures into the international LNG market, and QatarEnergy’s exploration efforts, highlight a strategic move towards diversification. 2. Energy Security: • Geopolitical Considerations: For countries like China, energy security remains a critical concern. Acquiring international assets can enhance energy security by ensuring stable and diversified supply sources. • Strategic Gaps: Filling strategic gaps through international acquisitions can strengthen NOCs’ competitive positioning and long-term sustainability. 3. Competitive and Sustainable Portfolios: • Alignment with IOCs: NOCs are increasingly aligning their motivations with those of International Oil Companies (IOCs), focusing on portfolio competitiveness and sustainability. • Sustainability Goals: Acquisitions that align with sustainability goals, such as investments in renewable energy or low-carbon technologies, can enhance NOCs’ long-term viability. Opportunities and Challenges 1. Opportunities: • Uncrowded Markets: While North America has seen a recent M&A frenzy, other regions remain less crowded, presenting opportunities for NOCs to acquire high-quality assets. • Strategic Acquisitions: Identifying and acquiring material, high-quality opportunities can provide NOCs with strategic advantages and growth potential. 2. Challenges: • Geopolitical Risks: International acquisitions come with geopolitical risks, including regulatory hurdles, political instability, and potential conflicts.

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Here is our latest commentary in which we highlight our fireside chat with Enterprise Products Partners co-CEO's Jim Teague and Randy Fowler. We remain bullish on the midstream energy sector and provide a few thoughts on oil and natural gas prices. As always, we appreciate your feedback and questions. #AI #energysector #investing #midstream

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#taxplanning, #naturalgas Register to learn more about tax advantaged investments in the energy sector. Long-term natural gas macro trends show strength driven by #lng and #datacenters requiring substantial amounts of reliable power sources. Natural gas is well positioned to exploit these secular trends.

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📈 Highlights from TXOGA’s Monthly Energy Economics Review (MEER) – October 2024 The Monthly Energy Economics Review (MEER) bridges gaps in public data across the entire oil and natural gas value chain, offering timely insights and comprehensive estimates for Texas' production, trade, and consumption. The October edition, with data through September, shows that Texas’ oil and natural gas production and exports have remained strong and near record highs, despite fewer active drilling rigs. We also highlight the timeliness and accuracy of our production forecasts, as well as a new high-water mark for contributions by dispatchable electricity generation so far this year. 🔹 Texas production near-record highs. Throughout September 2024, Texas maintained near-record oil and natural gas production levels. TXOGA's projections indicate that Texas produced approximately 5.7 million barrels per day (mb/d) of crude oil, 33.3 billion cubic feet per day (bcf/d) of natural gas, and 3.8 mb/d of natural gas liquids (NGLs) during the month.   🔹 Consistency with EIA Data. The EIA’s data for July 2024, released on September 30, closely aligned with TXOGA’s projections from the August 12 MEER, with differences of less than 1% for crude oil, natural gas, and NGLs.   🔹 Texas Highlights for July 2024 ·      Oil and refined products. Record-high NGL field production (3.85 mb/d) and the second-highest crude oil production (5.71 mb/d). Additionally, refiners and blenders in Texas recorded the highest net crude oil inputs for July, reaching 5.55 mb/d. ·      Natural gas. TXOGA estimates Texas produced 27.8 bcf/d of dry natural gas in July. Of this,15.1 bcf/d was consumed in-state, mainly by industry and for electricity generation. Another 11.1 bcf/d was exported, including 6.7 bcf/d as liquefied natural gas (LNG) and 4.4 bcf/d via pipelines to Mexico, per U.S. International Trade Commission data. 🔹 Texas Energy Exports. Texas exported $134.5 billion in energy products during the first seven months of 2024, according to U.S. International Trade Commission data.   🔹 ERCOT Update. In September 2024, the Electric Reliability Council of Texas (ERCOT) relied on thermal and dispatchable generation for up to 97.8% of its electricity needs. For 15% of the month (108 out of 720 hours), dispatchable sources provided at least 90% of the region’s electricity supply. For details, check out the MEER! https://lnkd.in/g8tSBmUm #TexasOilAndGas #RecordBreaking #EnergyProduction #TXOGA #IndustryLeadership #Energy #Oilindustry #Productivity #NaturalGas #QuantitativeAnalysis #Strategy #Innovation #Markets #Data

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Conoco Selling Permian Assets for $1 Billion+ According to Reuters yesterday, Conoco is exploring the sale of over $1 Billion of Permian assets. It was reported that RBC is leading the sale process for Conoco and has invited bids recently from potential buyers. Reuters reported that these Conoco Permian assets span about 55,000 net acres in the Delaware portion of the Permian Basin and will produce about 17,000 barrels of oil equivalent per day by the end of 2024. Don’t forget to refer me to your companies Hiring Managers and Executives for any hiring needs they can use recruiting assistance with. We can help identify candidates in Engineering, Accounting/Finance, Land, Geoscience, EHS, Field roles and all other positions. Oliva Consulting Group is the leading US Oil & Gas E&P focused recruiting firm with a database of 40,000+ candidates. Over the past 10 years we’ve placed professionals at over 70 Oil & Gas companies.   Follow me by clicking the "FOLLOW" button on my LinkedIn Profile to keep updated on any new Oil & Gas job openings.   Michael Oliva Oliva Consulting Group LLC

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𝙏𝙚𝙭𝙖𝙨 𝙇𝙉𝙂 𝘽𝙧𝙤𝙬𝙣𝙨𝙫𝙞𝙡𝙡𝙚 𝙇𝙇𝘾 𝘼𝙙𝙫𝙖𝙣𝙘𝙚𝙨 𝙬𝙞𝙩𝙝 𝙎𝙞𝙜𝙣𝙞𝙛𝙞𝙘𝙖𝙣𝙩 𝙊𝙛𝙛𝙩𝙖𝙠𝙚 𝘼𝙜𝙧𝙚𝙚𝙢𝙚𝙣𝙩 𝙛𝙤𝙧 𝙇𝙉𝙂 𝙀𝙭𝙥𝙤𝙧𝙩 𝙏𝙚𝙧𝙢𝙞𝙣𝙖𝙡 Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, LLC, has reached a pivotal milestone by securing another off-take agreement, reinforcing its path to a final investment decision (FID) for its 4 MTPA LNG export facility at the Port of Brownsville, Texas. This latest agreement, coupled with prior commitments from leading entities like EQT Corporation, Gunvor Group, and Macquarie Group, highlights Texas LNG's role in the global energy transition and marks it as the lowest emitting LNG facility in the U.S. Brendan Duval, CEO of Glenfarne Energy Transition, expressed gratitude for the diverse and robust customer base, which bolsters the project's finance ability. With a commitment to environmental stewardship, Texas LNG continues to attract significant global investment, supporting the broader energy transition movement. #EnergyTransition #LNG #Sustainability #InvestmentInEnergy https://lnkd.in/gfqYa_ng

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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‘Tis the Season for Midstream Deals and Decisions in the Permian Jingle bells are ringing this week in the Land of Oil and Gas A-plenty where midstream operators are already unwrapping holiday gifts. Reese Energy Consulting today is following the latest from the Permian, starting with Midland, Texas-based rockstars Kinetik Midstream and E&P Permian Resources. Kinetik, which in short order has become the Delaware’s largest independent gatherer and processor, operates 4,600+ miles of natural gas and crude oil pipe, and six gas plants with another under construction and another one planned. The company in 3Q reported $83.7 million in net income—a 94% increase year over year—and fattened its stake in Diamondback Energy’s EPIC crude pipeline to 27.5%. Kinetik will now further expand its “super system” in a $180 million bolt-on deal for Permian Resources’ Delaware oil and gas midstream assets. Kinetik gains 60,000 gross acres dedicated by Permian Resources under long-term, fixed-fee agreements that include 150 MMCFD and an estimated 250 MBPD next year, 250 MMCFD of compression, and natural gas processing. For its part, Permian Resources is sticking to its guns to remain the Delaware’s lowest-cost operator. This, after announcing a third consecutive increase to its full-year production targets and 160.8 MBPD announced in 3Q. Rock on, rockstars. Energy Transfer meanwhile has gifted Permian producers with a FID on the formerly named Warrior natural gas pipeline project. Now known as the Hugh Brinson, the 400-mile pipeline will flow an initial 1.5 BCFD from the Waha Hub to its pipeline connection south of Fort Worth. Phase I completion is expected by year end 2026 to be followed by Phase II which will increase capacity to 2.2 BCFD. Jingle all the way. What do you think? Learn more about REC and our range of midstream services at https://lnkd.in/ewhkGFa. For more info about our online natural gas training courses, visit us at https://lnkd.in/ggd3UkJM.  

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📢 𝙀𝙭𝙘𝙞𝙩𝙞𝙣𝙜 𝙉𝙚𝙬𝙨 𝙛𝙧𝙤𝙢 𝙏𝘾 𝙀𝙣𝙚𝙧𝙜𝙮 𝘾𝙤𝙧𝙥.! TC Energy is set to spin off its oil business into a new publicly traded company, 𝑺𝒐𝒖𝒕𝒉 𝑩𝒐𝒘 𝑪𝒐𝒓𝒑., 𝒘𝒊𝒕𝒉 𝒊𝒕𝒔 𝑼.𝑺. 𝒉𝒆𝒂𝒅𝒒𝒖𝒂𝒓𝒕𝒆𝒓𝒔 𝒊𝒏 𝑯𝒐𝒖𝒔𝒕𝒐𝒏. The move, approved by shareholders, will divide TC Energy into two independent entities, focusing on natural gas pipelines and crude oil pipelines, respectively. 🔹 South Bow Corp. Highlights: 𝐇𝐞𝐚𝐝𝐪𝐮𝐚𝐫𝐭𝐞𝐫𝐬: 𝐇𝐨𝐮𝐬𝐭𝐨𝐧 𝐄𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬: ~100, 𝐰𝐢𝐭𝐡 60 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 𝐛𝐚𝐬𝐞𝐝 𝐚𝐭 𝐓𝐂 𝐄𝐧𝐞𝐫𝐠𝐲’𝐬 𝐨𝐟𝐟𝐢𝐜𝐞𝐬 𝐚𝐭 700 𝐋𝐨𝐮𝐢𝐬𝐢𝐚𝐧𝐚 𝐏𝐢𝐩𝐞𝐥𝐢𝐧𝐞 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩: 3,045 𝐦𝐢𝐥𝐞𝐬, 𝐢𝐧𝐜𝐥𝐮𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐫𝐨𝐟𝐢𝐭: ~1 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐂𝐀𝐃 𝐥𝐚𝐬𝐭 𝐲𝐞𝐚𝐫 Despite global projections of plateauing oil demand, South Bow anticipates continued growth, driven by population increases and emerging economies. They emphasize the importance of North American crude oil supply in meeting future demand. For more details, check out the full article by Amanda Drane in the Houston Chronicle. #EnergyIndustry #Houston #TCEnergy #SouthBowCorp #OilPipelines #BusinessNews 📝 Amanda Drane covers the Texas energy industry for the Houston Chronicle. Connect with her at [email protected]. https://lnkd.in/gjmqJ4x8

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“Woodside Energy Seeks Strategic Partners for Driftwood LNG Project, Eyeing Upstream Gas Expertise” Insights: 1. Strategic Acquisition of Tellurian: • Woodside Energy’s planned acquisition of Tellurian for $1.2 billion positions the company to take over the Driftwood LNG project in Louisiana, enhancing its footprint in the U.S. LNG market. 2. Focus on Partner Selection: • CEO Meg O’Neill emphasizes the importance of selecting the right partners for the Driftwood project, stating that Woodside has received significant interest from potential partners, allowing them to be selective in their collaborations. 3. LNG Project Overview: • Driftwood LNG is a fully permitted project aiming for a final investment decision (FID) by Q1 2025. The development plan includes five trains with a total capacity of 27.6 million tonnes per annum, significantly boosting Woodside’s LNG portfolio. 4. Understanding the U.S. Gas Market: • Woodside is particularly interested in partners that can provide insights into the U.S. onshore gas market to ensure a reliable and affordable supply of gas for the LNG plants, recognizing the complexities of the shale gas landscape. 5. Cautious Approach to Upstream Investment: • While Woodside acknowledges the importance of upstream connections, O’Neill stated that the company has no immediate plans to enter the upstream sector, citing the distinct skills required for U.S. shale gas operations compared to their existing capabilities. 6. Capital Allocation and Returns: • Woodside is confident that Driftwood LNG can meet its capital allocation framework returns, leveraging its strengths in project execution and operations to optimize asset value. 7. Environmental Considerations: • The Driftwood project is expected to contribute to reducing the average emissions intensity of Woodside’s LNG portfolio, aligning with broader sustainability goals. 8. Project Advantages: • O’Neill describes Driftwood LNG as a “truly advantaged” opportunity due to its fully permitted status and the involvement of Bechtel as the engineering, procurement, and construction contractor, which adds credibility to the project’s execution. 9. Market Positioning: • If successful, the Driftwood project will position Woodside as a key independent player in the global LNG market, with strategic exposure to both the Atlantic and Pacific basins, enhancing its competitive advantage. 10. Potential for Future Cash Generation: • The project is anticipated to generate significant future cash flow, contributing to Woodside’s financial health and supporting its growth strategy.

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Hat tip to Beacon Offshore Energy, for 1st oil at Winterfell (look for EOY exit rate ~20MBOED). Their focused strategy execution by successfully monetizing non-op positions to O.G. Oil & Gas Ltd., and bringing it's operated short cycle, quick return ILX asset online positions them to continue funding and focusing on delivering their larger operated development at Shenandoah. Value delivered to Kosmos Energy, Red Willow Production Company, and CSL Exploration along with the newest members of the GOM Independents Club, Westlawn Americas Offshore (WAO) and Alta Mar Energy, LLC. Oxy gets a win as well with Winterfell production tied back to the Heidelberg platform that was otherwise looking down the barrel of a near term abandonment. Bravo, Beacon Offshore Energy! https://lnkd.in/gedk4eUU #oil #energy #gulfofmexico #ilx #strategy

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🚧 𝙂𝙤𝙡𝙙𝙚𝙣 𝙋𝙖𝙨𝙨 𝙇𝙉𝙂 𝘾𝙤𝙣𝙨𝙩𝙧𝙪𝙘𝙩𝙞𝙤𝙣 𝙏𝙪𝙧𝙢𝙤𝙞𝙡 𝘿𝙚𝙡𝙖𝙮𝙨 𝙏𝙚𝙭𝙖𝙨 𝙋𝙡𝙖𝙣𝙩 𝙎𝙩𝙖𝙧𝙩𝙪𝙥 🚧 𝑴𝒂𝒋𝒐𝒓 𝑫𝒆𝒍𝒂𝒚𝒔 𝒇𝒐𝒓 $11 𝑩𝒊𝒍𝒍𝒊𝒐𝒏 𝑳𝑵𝑮 𝑷𝒓𝒐𝒋𝒆𝒄𝒕 𝒊𝒏 𝑻𝒆𝒙𝒂𝒔 🔹 𝑷𝒓𝒐𝒋𝒆𝒄𝒕 𝑶𝒗𝒆𝒓𝒗𝒊𝒆𝒘 Golden Pass LNG, a $11 billion joint venture between QatarEnergy and ExxonMobil, faces a significant delay. Initially set to start operations this year, the project’s startup is now postponed by at least six months. 🔹 𝑹𝒆𝒂𝒔𝒐𝒏𝒔 𝒇𝒐𝒓 𝑫𝒆𝒍𝒂𝒚 𝐋𝐞𝐚𝐝 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐨𝐫 𝐁𝐚𝐧𝐤𝐫𝐮𝐩𝐭𝐜𝐲: Zachry Holdings, the lead contractor, filed for bankruptcy and exited the project. This threw the project timeline into uncertainty. 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐒𝐭𝐚𝐭𝐮𝐬: The plant was 75% complete before the turmoil. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐅𝐢𝐥𝐢𝐧𝐠: Indicated potential revisions in the startup schedule. 🔹 𝑹𝒆𝒗𝒊𝒔𝒆𝒅 𝑻𝒊𝒎𝒆𝒍𝒊𝒏𝒆𝒔 𝐓𝐫𝐚𝐢𝐧 𝐎𝐧𝐞: Now expected to be online by the end of June 2025. 𝐓𝐫𝐚𝐢𝐧𝐬 𝐓𝐰𝐨 𝐚𝐧𝐝 𝐓𝐡𝐫𝐞𝐞: Forecasted for December 2025 and March 2026, respectively. 🔹 𝑪𝒉𝒂𝒍𝒍𝒆𝒏𝒈𝒆𝒔 𝑨𝒉𝒆𝒂𝒅 𝐁𝐮𝐝𝐠𝐞𝐭 𝐎𝐯𝐞𝐫𝐫𝐮𝐧𝐬: The project is already $2.4 billion over budget. 𝐖𝐨𝐫𝐤𝐟𝐨𝐫𝐜𝐞 𝐈𝐦𝐩𝐚𝐜𝐭: Zachry dismissed 4,072 workers from the Sabine Pass project. 🔹 𝑭𝒖𝒕𝒖𝒓𝒆 𝑼𝒑𝒅𝒂𝒕𝒆𝒔 An updated completion schedule will be disclosed. The joint venture owners are yet to identify a new contractor. Stay tuned for more updates on the Golden Pass LNG project. ♻️ If you found this update helpful, consider sharing it with your network! P.S. How do you think this delay will impact the global LNG market? Comment below! https://lnkd.in/g4fqTwb3

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Apollo Global Management, Inc. acquires Freedom CNG, a leading provider of Renewable Natural Gas fueling infrastructure - Apollo-managed funds have acquired a majority interest in Freedom CNG, a provider of compressed natural gas and renewable natural gas fueling infrastructure in Texas. - Freedom CNG operates a network of high-capacity fueling stations in the Houston Metro area, catering to various customers including logistics companies, municipalities, and school districts. - Apollo Partner Scott Browning highlighted Freedom's growth potential, emphasizing established relationships with customers and new development opportunities. - Freedom's Managing Partners expressed enthusiasm for partnering with Apollo, aiming to meet the growing demand for low carbon alternative fuels. - Transportation currently accounts for over 25% of U.S. energy consumption, necessitating practical solutions for sustainable energy migration. - The use of compressed natural gas, particularly renewable natural gas sourced from landfills, provides a cost-effective solution with significant emissions reductions. - The demand for renewable natural gas is expected to accelerate due to increased adoption and bipartisan regulatory support, positioning Freedom favorably in the market. - Over the past five years, Apollo has invested approximately $40 billion in energy transition and sustainability initiatives, reflecting its commitment to clean energy. - Legal and financial advisory services for the acquisition were provided by multiple firms including Raymond James & Associates and Vinson & Elkins LLP. - Apollo is a global alternative asset manager with a focus on providing investment strategies across various risk-reward spectrums, currently managing approximately $696 billion in assets. https://lnkd.in/gNShE2iC

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