September 12, 2025
Things I Learned This Week Rubbing Elbows
I was in Houston at the end of last week for Shel Erikson’s service and stayed a few days to meet with people. The Barclays Energy Conference was also held last week in NYC and, since the demise of Howard Weil, it has become the biggest energy conference going on right now. So, what stood out? Two things from my conversations. First, AI everything. I’m bracing myself for AI paperclips! Not many management teams understand the implications, use and impacts of AI across different parts of their business. But if you don’t have something at least loosely connected to AI, you might as well be selling buggy whips. Secondly, everyone is hoping by being optimistic and digging deep to find things to talk about. There was a lot of optimism and arm-waving, but few investors were buying it, and attendance was overwhelmingly hedge funds.
Transitioning. I am using that word in a different sense today. The oil and gas business is stymied right now by commodity prices, with the futures strip at $63 for years to come. You can hope things get better, but that isn’t strategic or positive. The smart guys are figuring out where they need to be and what they need to have two years from now if oil is still at $63. Waiting doesn’t work. This is when truly positive consolidation occurs. Waiting for better times to do a deal almost never works. You do it when times are tough. That is when the best deals are cut.
The Power Needs for Data Centers! There isn’t much good news for crude oil, and natural gas, but natural gas is clearly the hydrocarbon du jour across many different industries. The next point many companies made was, “Don’t worry, oil prices will come back, they always do and here is a list of reasons it will come back strong!” I think that misses the point. All of the technology we have thrown at our industry over the last couple of decades, from 3-D seismic to top drives to diamond bits to simu-fracking, has lowered the economic breakeven price for crude oil. As peripheral technologies continue to grow, the breakeven price will keep coming down.
Doing More with Less. This will be a key category going forward, as it is becoming the mantra of every business. Layoffs are starting and will likely accelerate over the next year as AI becomes more broadly incorporated into businesses. It will not take as long as you think. That is a critical point. And the solution won’t come from McKinsey or Accenture. They are going to struggle to find relevance in the future world of AI. One slide I really liked from a company was titled, “The Bigger Picture – Leveraging AI to Increase Speed, Transparency, and Efficiency at all Angles.” Layoffs will come from back offices, geoscience teams and field operations. But the goal has always been to increase efficiency to improve the generation of cash and returns. Now, there’s a supercharged engine to help achieve that. And that efficiency is already translating into doing more with less.
PPHB U.S. Energy Market Highlights:
Commodity Prices: WTI crude oil is currently $63.09 per barrel (down ~1.4% week-over-week) and natural gas is $3.30 per MMBtu (up ~7.8% week-over-week).
Crude Oil Production: U.S. crude oil production is currently ~13.5 MM BOPD (up ~1.5% year-over-year).
Crude Oil Inventories: U.S. crude oil inventories increased by ~3.9 million barrels week-over-week vs. an estimated decrease of ~1.9 million barrels.
Frac Spread Count: There are currently 164 frac spreads operating in the U.S. (an increase of 2 spreads week-over-week).
Onshore Drilling Rig Count: There are currently 522 drilling rigs operating in the U.S. (an increase of 1 rig week-over-week).
But More on AI. OpenAI just signed a $300 billion deal with Oracle. For context, this single contract is larger than the annual GDP of countries like Finland or Chile. It is for access to cloud computing. This marks a trend that reverses recent history. Some may remember how expensive long-distance calls once were. Then, after the iPhone and others came out, roaming charges exploded phone bills. But eventually, we entered Nirvana. I could call anyone, anywhere and talk for as long as I wanted, with no extra cost. Wow! That era is ending and usage charges are making a comeback. We are already seeing it. Oracle has run ads touting that its internet, storage and computing charges are lower than others in the industry. Usage. It used to be that no application’s computing needs couldn’t be met fairly easily. But now, AI chips consume several times the energy of the previous generation, and the use of AI agents and models, such as Grok and ChatGPT draw more power as queries become more complex. And they are. So, start shifting your mindset and start paying attention to how much power you are using because billing is moving toward charging for time as a product, not a service.
Bleed It On. The eight OPEC+ countries announced they would put an additional 137,000 barrels per day of production back on the market. In 2023, OPEC+ took 2.2 million barrels per day off the market, and since April has put all of that back. The latest amount, 137,000 barrels per day, is the beginning of a 1.65 million barrels per day cut that is now being put back into the market. It is expected to be fully completed by the end of 2026, slowly bled back into the market over the next year. OPEC+ continued its mantra of flexibility, maintaining the option to pause or reverse production adjustments should market conditions deteriorate. The next meeting is scheduled for October 5.
The Tsunami Arrives. WaterBridge Infrastructure LLC announced its IPO of 27,000,000 Class A shares at an anticipated initial offering price between $17.00 and $20.00. That implies a deal size of $460-$540 million, with the usual green shoe of another 4.05 million shares. The symbol will be WBI, marking the first water company to go public since Aris four years ago, which was recently acquired by Western Midstream. J.P. Morgan and Barclays are lead bookrunners, joined by Goldman Sachs, Morgan Stanley, Wells Fargo Securities, Piper Sandler, Raymond James and Stifel as additional bookrunners, with Texas Capital Securities, Pickering Energy Partners, Janney Montgomery Scott, Johnson Rice & Company and Roberts & Ryan as co-managers. That makes 13 banks and 13 recommendation reports issued soon after the offering. The company is positioning itself as a key water management provider for the oil and natural gas industry, with extensive operations in the Delaware Basin. The use of proceeds has two main purposes: approximately $228.2 million will be used to purchase a portion of the operating company interests held by Elda River, a third-party investor, and the remaining proceeds will be used to repay certain outstanding debt of WaterBridge Operating, NDB Operating and Desert Environmental. The largest portion of WaterBridge’s revenue comes from managing produced water, a byproduct of oil and gas production. This involves:
Gathering - Collecting water from drilling sites via its extensive pipeline network.
Transportation - Moving the water through its pipeline network, which includes over 1,600 miles in the Delaware Basin.
Recycling and disposal - Treating and disposing of the produced water at its 160+ facilities.
Good luck guys.
Spending. Global upstream oil investment is set to fall for the first time since 2020, with a 6% drop driven mainly by a decline in the U.S. shale sector.
A View of the Debt Markets. “For the first time since 2010, dry powder in the private markets declined in 2024, and the prior declines were fairly small in comparison to the estimated $322.8 billion drop from the respective year-ends of 2023 to 2024. Capital calls have been higher than distributions for six of the past seven years, so net asset values (NAVs) have continued to grow, pushing up AUM, but a tough fundraising environment has meant that there is less capital waiting to be deployed. Before 2010, net cash flows were also negative, but fundraising was backfilling the war chests enough to make up the difference and allow dry powder to continue growing. The flywheel has slowed, however. Decreased deal flow has led to decreased distributions, which has led to decreased fundraising and less capital for deals,” according to Hilary Wiek, CFA, CAIA, Senior Strategist, Pitchbook.
Free Speech. The 57-year-old Irishman was arrested last week at Heathrow Airport by five armed officers on suspicion of inciting violence. Not drugs, no weapons other than wit, which is generally not considered “dangerous,” the comedian (yes, comedian) was nabbed as he stepped off the airplane. His sin? He posted a comment on X that was deemed as inciting violence. The comment? “If a trans-identified male is in a female-only space, he is committing a violent, abusive act. Make a scene, call the cops, and if all else fails, punch him in the balls.” Now, I do not condone such speech at all, but I could have sworn we had a right to our opinions and the freedom to speak them. Oh, wait. This was in the UK. You know, the democratic state where speaking ill, even from a comedian, about another country, person or group is now against the law. Against the law to the point that five armed policemen met him at his flight and arrested him. Anyone planning on going to the U.S., or really anywhere right now, should consider putting Canadian maple leaves or other Canadian items on their bags and clothes. No one hates Canadians and they are unfailingly polite. But even they should probably stay off social media while in London. Or anywhere in the UK.
Tightrope. Israel bombed Hamas leaders who were in Qatar, basically where they have been “hiding out” while the war in Gaza continues. It was a highly provocative move, bombing a country that has committed no direct crimes against Israel. The jets bombed the Hamas headquarters while the Hamas leaders were meeting to discuss the latest peace proposal. Needless to say, the Qatari government was not thrilled by the action. The U.S. was only notified of the attack after it had already been launched, while the missiles were in the air. Israel stated that the attack was a “wholly independent Israeli operation.” “Israel initiated it, Israel conducted it, and Israel takes full responsibility.” Trump was in Qatar recently, visiting the U.S. airbase located there, which is one of the largest U.S. bases in the region. It keeps getting more interesting.
It All Adds Up. Another story about China controlling rare earth minerals and other critical materials is nothing new. The “Belt and Road” program put China in the driver’s seat when it came to gaining access to Africa’s mineral interests. China itself holds large reserves within its own borders, making the world increasingly dependent on Chinese supply lines. This turn into a Tortoise and Hare story, but… Exxon is buying the technology and U.S. assets of Superior Graphite, a 100+ year old company with obvious experience in graphite and materials production. Why graphite? Because China dominates the market and the material is critical for batteries and EVs. Exxon has been making smaller acquisitions like this, slowly building up a U.S. supply chain from the ground up. As Exxon put it, “Like in any market, there are fluctuations in the near term. But we fundamentally see the demand for batteries and electric vehicles and, increasingly, in large-scale energy storage solutions, increasing over the longer term.” Exxon will begin producing advanced synthetic graphite at commercial levels in Kentucky and Illinois in the next couple of years. EVs aren’t dead and neither are batteries, though clearly the growth in EV sales is plateauing after a strong multi-year run. I don’t envy the car manufacturers who tooled up production lines for volumes that may not materialize for years. Still, securing and growing a U.S. supply chain for rare materials, especially those controlled by China, has to be a good thing. Aim small, but shoot often.
It Can’t Be but It Is. We try and stay current with developing trends. We learned about “quiet quitting” early, as it became the work (non-work) battle cry for many. The latest one is a bit more focused. At first, I was going to pass on it, but when I Googled the topic, I was frankly surprised by the results. One of the first results was a clip from an LA news station reporting on this new phenomenon of sperm racing. Yes, sperm racing. “Sperm racing in LA: Inside the first-of-its-kind race that's taking the internet by storm” read the headline. Contenders were given money each week to train their mind, bodies and diets. One race even included a young man from USC going against an UCLA student. The competition comes complete with a Sperm Racing Professional Sperm Analysis Kit, which measures concentration, progressive motility, progressive motility, motile sperm concentration and progressive motile sperm concentration. On the Sperm Racing website, organizers have built a microscopic racetrack that mimics the reproductive system, including chemical signals, fluid dynamics and synchronized starts. High-resolution cameras then track every microscopic move. The entire thing is live-streamed, with stats, leaderboards and instant replays. A new Olympic sport?
Reality. Conoco's controllable costs have risen by about $2 per barrel from 2021 to 2024, reaching $13, making it harder for the company to compete, said CEO Lance. “That has been our problem. Unit cost is rising faster than our production and our revenue, which is eating into our margin, and obviously you can't let that go on forever,” he said at a town hall meeting.
Real Money. We all know that President Trump is not a fan of offshore wind, evidenced by him halting the $5 billion Revolution Project despite it being near completion. But blustering and grandstanding aside, the Department of Transportation has terminated about $680 million in offshore wind grants which has led to the termination of some projects and the withdrawing from others. As of now, 12 offshore wind projects are seriously impacted by these cuts. MARAD has withdrawn six projects and terminated five within its Port Infrastructure Development Program.
Withdrawn:
Sparrows Point Steel Marshalling Port Project ($47 million)
Bridgeport Port Authority Operations and Maintenance Wind Port Project ($10.5 million)
Wind Port at Paulsboro ($20.5 million)
Arthur Kill Terminal ($48 million)
Gateway Upgrades for Access, Resiliency & Development at the Port of Davisville Project ($11 million)
Norfolk Offshore Wind Logistics Port ($39 million)
Humboldt Bay Offshore Wind ($426 million)
Terminated:
Redwood Marine Terminal Project Planning ($8.6 million)
Salem Wind Port Project ($33.8 million)
Lake Erie Renewable Energy Resilience Project ($11 million)
Radio Island Rail Improvements in Support of Offshore Wind ($1.6 million)
PMT Offshore Wind Development ($20 million)
Big Bucks. I was a bit surprised by a recent article. It said that banks were coming back to the Oil and Natural Gas industry with better terms and more availability to a degree we have not seen since pre-Covid. Really? I guess it shouldn’t be much of a surprise. Equity markets appear much friendlier with IPOs starting to stack up. “I think all the banks are willing to hold more than what they might’ve just a few years ago, in terms of commitment amounts,” said a BOK banker, one of the more active banks in the sector. Reserve-based lending continues, but the haircuts don’t seem nearly as severe as they have been over the past few years. Regional and super-regional banks are getting more involved than they have been in years past because much of the sector is made up of smaller market capitalization businesses, making it ideal for middle-market lenders. The biggest issue has been accessing growth capital. Working capital is one thing, but fueling growth and out-spending cash flows have been verboten for the last few years, partially due to equity investors shunning away from participating in the sector. But to be fair, most of the banks and family offices active in the space are targeting natural gas over crude oil. And understandably so. At $3.75/mcf, cash flow is much better than crude oil at $63. And from Brad Nelson, a great banker at Stephens and a good friend - “I would say most of the investors, 70% to 80%, are looking for gas-weighted stories.”
Yikes! The Tax Foundation, an independent, non-profit tax policy research organization, states, “The largest area of reform (in the Big Beautiful Bill) is … green energy tax credits,” which analysts say will eliminate approximately $500 billion in federal aid over the next 10 years.
SPAC Me. We have written about the renewed interest in SPACs in the energy space, which are making a comeback after fizzling out just a couple of years ago. The Rice family, which includes the CEO of EQT and others, has announced their THIRD SPAC. Much like the last two, this one is focused on E&P, power generation, energy infrastructure, critical metals and the minerals sector. No surprise there. The S-1 notes a $250 million raise. The joint book-running managers are Barclays and Jefferies. The Rice Investment Group (RIG) and Mercuria, an energy, metals and other commodities trading firm, will fund the effort. Some SPACs seem more legitimate than others. This one should be another real deal.
California Controversy. We have written several times about the Sable Offshore Energy Group, a Bill Flores SPAC formed to take over an offshore field discovered by Exxon years ago. It has been tied up in legal issues for the past decade. In early May, the news came out that the first delivery of crude oil from the Harmony Platform in the Santa Ynez Unit offshore had finally occurred. It is expected that full production from all three platforms will begin by the end of the year. Then the company closed an upsized secondary stock offering, raising about $334 million in gross proceeds, netting about $295 million overall. The deal was done by J.P. Morgan, Jefferies, TD Cowen, The Benchmark Company, Johnson Rice & Company, Pickering Energy Partners, Roth Capital Partners and Tuohy Brothers. Then came the lawsuits. A class-action lawsuit against Sable Offshore alleges that the company and its executives made misleading statements about its oil production, specifically that it had restarted production at the Santa Ynez Unit when it had not, which led investors to purchase shares during the secondary offering under false pretenses. The lawsuit claims this was a deliberate attempt to inflate the stock price and benefit from the offering. It was eventually exposed by a letter from California's Lieutenant Governor, causing investors to lose money when the stock price fell. It seems that the well was tested, but didn’t produce. The stock price has been volatile, reaching $33 per share after the $29.50 offering, primarily due to the news that production was starting back up. By July, the stock was $21. Then, in mid-July, the stock leaped 43% in two days as the company announced positive production guidance. It then dropped to $20 this week and currently sits at $23. The investment firm Adage sold 2.9 million shares, but Vanguard Group and Invesco added to their positions. This is occurring as California’s governor proposed stricter testing for restarting inactive intrastate oil pipelines, which would directly impact Sable’s efforts to reactivate their 2015 pipeline off the Santa Barbara County coast. In typical fashion, the governor said that the regulation was a way to offset a separate proposal he has made that would ease the process of acquiring onshore permits in California. Onshore producers in the state include Chevron, California Resources and Berry Corp.
Ivory Tower. The magazine Nature published a paper this month titled “Systematic attribution of Heatwaves to the Emissions of Carbon Majors”. The focus on the contributors who have had an increasing effect on the number of heatwaves. The study extends existing extreme event attribution methods in two ways:
Systematically applying EEA to a large set of historical heatwaves, rather than focusing on single events.
Tracing not just climate change’s effect, but the contribution of individual carbon majors (major fossil fuel & cement producers) to those heatwaves.
Data Source: 213 heatwaves reported in the EM‑DAT disaster database between 2000–2023, chosen because of their significant societal impacts.
The top carbon emitters, according to the study:
The former Soviet Union
People’s Republic of China for coal
Saudi Aramco
Gazprom
ExxonMobil
Chevron
National Iranian Oil Company
BP
Shell
India for coal
Pemex
CHN Energy
People’s Republic of China for cement
Notice the trend here? And while the study looked back into the 1800’s, there was no mention of the positive impacts the energy revolution has provided. I wouldn’t expect it. It isn’t germane to the point of the paper. But this does give plaintiff attorneys another thing to wave at a jury in trial. “This research is an important step towards accountability” said an Imperial College professor. Accountability? The study found that Saudi Aramco and Gazprom were each responsible for about $2 trillion of lost global economic growth from extreme heat. Everyone on the above list is in jeopardy of now even more lawsuits. We save the world and are still the bad guys!
Demand Grows for Natural Gas. The recently announced NextDecade – ConocoPhillips LNG deal will complete commercialization of Rio Grande LNG Train 5, where 4.5 million tons per year of LNG are now under 20-year contracts. NextDecade believes it is, “is sufficient to support a positive FID”. One ton of LNG is approximately equal to 48,690 cubic feet of natural gas. This means 4.5 million tons per year of LNG is equal to approximately 219,105 million cubic feet of natural gas. That is 600 mmcf/d of additional natural gas supply.
Political Observation, Not Opinion. The likely next mayor of New York City, Zoran Mondani, is a member of the Democratic Socialists of America (DSA). In a speech a couple of years ago he said, “We have a socialist politics. Socialism is our theory and DSA is our practice.” That should come as no surprise since he proudly professes to be a socialist. He was elected by a landslide of young voters which significantly exceeded the expected turnout. The DSA mirrors Mr. Mondani’s beliefs. The platform of the DSA is obviously socialist and, like all other platforms, it has its issues. This platform believes that, “our fight is to end capitalistic exploitation”. “In overcoming the old barbaric order of capitalism, the working class will not only liberate itself from its own shackles, but all of humanity from the parasitic death drive of capitalism.” That has some very worrisome language. Even more so when considering this platform is for the mayor of the largest city in the U.S., supported by a radical wave of young people. I’m not sure what to think.
It Sounded Good, But… New Fortress Energy is a global energy infrastructure company that provides integrated natural gas and power solutions by developing, financing and operating facilities, power plants and logistics to deliver affordable and cleaner energy. They specialize in the procurement, liquefaction and transportation of liquefied natural gas (LNG), and operate infrastructure like offshore and onshore LNG terminals, gas-fired power plants and conversion services to replace oil-based fuels with natural gas. Their goal is to provide energy solutions that spur economic growth and reduce carbon emissions, ultimately aiming to support the world's transition to carbon-free power. Wow! That all sounds like a fabulous set of ideas and goals. Power, LNG, and logistics. But all the sound bites in the world can’t save a troubled company. After their earnings release, this was one analyst’s interpretation of events.
New Fortress Energy reported disastrous Q2 results well below consensus expectations with negative Adjusted EBITDA and record cash outflows from operations.
Assuming no major increase in LNG cargo sales, the recent sale of the Jamaica business will lead Q3 results to be even worse.
Adding insult to injury, the company warned of imminent debt covenant violations.
While New Fortress Energy has initiated a formal review of strategic alternatives, a pre-packaged bankruptcy appears to be the most likely outcome currently.
Nepal. A country that inspires spirituality with men walking around and talking about the meaning of life. It turns out, that isn’t all. The government was worried about some protests, so they decided to take social media away from the people. Oops. The Gen Z-led social media movement revolted, setting fire to the Parliament building and Supreme Court. 30 people are dead and the government has been ousted. The movement was started against the lavish lifestyles of “Nepo Kids”, children of wealthy, famous or politically influential figures who benefit from their family's power and connections. In other words, this was fueled by high youth unemployment and lack of opportunity. So much for peace and tranquility in Katmandu.
LNG Catch-up. 15.8 Bcf/d, 15% of US natural gas production, is currently dedicated to LNG facilities. The projects already FID or under construction add another 7.9 Bcf/d of liquefaction capacity. Between growth in LNG exports and data center power needs, the outlook for natural gas production and demand is strong. The price, however, may have a below $5/mcf ceiling. But E&P companies do just fine at that price. For OFS, it is estimated that we can increase U.S. natural gas production from today’s 105 Bcf/d to 130 Bcf/d by 2030 by adding only 25-35 rigs and related services and equipment. That isn’t a huge move.
Operational LNG export facilities:
Sabine Pass LNG (Louisiana): Operated by Cheniere, this terminal has a peak export capacity of 4,550 MMcf/d.
Corpus Christi LNG (Texas): Also operated by Cheniere, this facility has an operational peak capacity of 2,400 MMcf/d, with an additional Stage III expansion recently completed.
Freeport LNG (Texas): With a peak capacity of 2,379 MMcf/d, this facility operates as both an import and export terminal.
Cameron LNG (Louisiana): A joint venture led by Sempra Energy, this terminal has a peak capacity of 1,980 MMcf/d.
Plaquemines LNG (Louisiana): Operated by Venture Global, Phase I of this facility began exporting in late 2024. Phase II started commissioning in September 2025, bringing the total peak capacity to approximately 1,800 MMcf/d.
Calcasieu Pass LNG (Louisiana): Operated by Venture Global, this terminal has a peak export capacity of 1,581 MMcf/d.
Cove Point LNG (Maryland): Operated by Dominion Energy, this facility can function as both an import and export terminal, with a peak export capacity of 757 MMcf/d.
Elba Island LNG (Georgia): With operations by Kinder Morgan, this facility has a peak export capacity of 360 MMcf/d.
New LNG facilities and expansions (2025–2028 and beyond): These projects have reached a final investment decision (FID) and are under construction.
2025:
Corpus Christi LNG Stage III (Texas): An expansion by Cheniere, this project produced its first LNG in February 2025 and is expected to have all seven mid-scale trains in full service by the end of 2026, with a peak capacity of 1,600 MMcf/d.
Golden Pass LNG (Texas): A joint venture between QatarEnergy and ExxonMobil, this terminal is located at an existing import facility. The first train is scheduled for commissioning in the first half of 2025, with a total peak capacity of 2,400 MMcf/d across three trains.
2027:
Rio Grande LNG Phase I (Texas): Operated by NextDecade, this three-train facility is targeting an in-service date in 2027, with a combined capacity of 2,100 MMcf/d. A federal court ruling in August 2024 has added some uncertainty, but construction is ongoing.
2028:
Port Arthur LNG Phase I (Texas): A two-train project by Sempra Infrastructure, with a combined capacity of 1,800 MMcf/d. It is expected to come online by 2028.
Corpus Christi Midscale Trains 8 & 9 (Texas): An additional expansion by Cheniere, slated for completion by 2028.
2029:
Louisiana LNG Phase I (Louisiana): A project by Woodside Energy expected to be completed in 2029.
And It Spreads. Spearhead Sand, in partnership with Liberty Energy, is proud to announce the successful completion of Canada’s first wet sand frac for Parallax Energy in the Western Canadian Sedimentary Basin. Wet sand has had a big impact in the Permian logistics of drilling. They are exporting their expertise from one basin to others. That is how technology and efficiency spread. Think of the impact it will have on the Middle East when our leading-edge domestic technology is fully deployed and used. Welcome Canada.
Energy IPO. Former governor and Energy Secretary Rick Perry and a Quantum Capital Group founder filed an S-1 for the IPO of an Amarillo, Texas-based power-for-AI company named Fermi Inc. It will trade on the Nasdaq and the London Stock Exchange. It is going to be structured as a REIT. The size of the deal has not been published yet. Bookrunners are UBS, Cantor and Mizuho with Macquarie Capital, Stifel and Truist. Recently, the company raised $100 million as part of a Series C equity funding round, led by Macquarie Group. Additionally, they have a $250 million senior loan facility, funded solely by Macquarie’s commodities and global markets business. Fermi described its business as “an advanced energy and hyperscaler development company purpose-built for the AI era” with plans to produce up to 11 gigawatts of power eventually, with 1 gigawatt expected to be up and running by the end of next year. That is either a long or very sharp ramp. Fermi has a long-term lease on 5,263 acres in Amarillo, Texas, capable of housing four large data center campuses in Fermi’s “Project Matador” development. The company plans to use natural gas, solar and nuclear for its power source. Last month, the company bought more than 600 megawatts of natural gas generation assets in two different deals, giving them a total of nine natural gas turbines to get to the 1 gigawatt level. Additionally, the company said that nuclear will become the primary source of power in the long term, with plans to add four Westinghouse AP1000 advanced Generation III+ Pressurized Water Reactors. The concern?? The last set of AP1000 units installed in the U.S. was at the Vogtle nuclear plant in 2023, coming in $17 billion over budget and more than seven years behind schedule. They also signed deals with two South Korean companies to help in its nuclear ambitions, with South Korea being the most likely country to produce Small Modular Reactors once they get permitted.
Snippets.
An average of 30% of accidents in the Permian Basin involve commercial vehicles, compared to a national average of 10%.
John Hess Joins Chevron’s Board Following FTC Clearance. Scott Sheffield was also cleared but passed on the invitation to join Exxon’s board. Both men were initially barred from joining the boards of the companies that acquired them.
Capital One reports that investor feedback indicates that sentiment toward oil equities remains cautious to bearish in the short term.
Any and all comments, arguments and rebuttals are welcome!
In addition to my association with PPHB, I serve on three private company boards. Merit Advisors is a property valuation company and I have long been a fan of optimizing how a business is run, not just the tools we make. Merit is in the business of savings companies’ money, actual cash, by doing a much more in-depth and realistic view of equipment and reserve valuations and I am very impressed with their work. I am also on the advisory board of Preng & Associates, a leading executive search boutique that specializes in all things related to Energy & Power. Nova is a gas compression company run by a very dynamic CEO with a very strong board and ownership.
I serve on the Advisory board of the Energy Workforce & Technology Council (formerly PESA), the National Ocean Industries Association (NOIA), and the Maguire Energy Institute at SMU my alma mater.
jim
214-755-3914 | james.wicklund@pphb.com
Leveraging deep industry knowledge and experience, since its formation in 2003, PPHB has advised on more than 180 transactions exceeding $11 Billion in total value. PPHB advises in mergers & acquisitions, both sell-side and buy-side, raises institutional private equity and debt and offers debt and restructuring advisory services. The firm provides clients with proven investment banking partners, committed to the industry, and committed to success.
