Energy icons


Energy M&A update: Q2 2018

As crude oil production fell from Q1 to Q2, plans for enhancing fossil and solar energy power in the United States emerge, as new technologies and opportunities from big business and government departments rose. This Energy mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the energy industry.

Energy trends

  • US oil production remains robust in April1: US crude oil production in April dipped slightly to 10.467 million barrels per day (mb/d) from March’s record high output of 10.469 mb/d. Much of this production can be attributed to high output from the Permian Basin, the largest oilfield in the United States. These strong production levels are expected to continue going into the future. In particular, production in the Permian Basin is projected to double between 2018 and 2023.
  • Department of Energy (DOE) invests in fossil energy power systems2: The DOE has chosen 15 projects to receive $8.8 million in funding for R&D projects that will enhance fossil energy power systems. The program is divided up into three areas of interest: sensors and controls technology, innovative concepts for water management in coal power generation systems, and improvements to coal combustion power plants. This funding is part of the DOE’s Fossil Energy Crosscutting Technology Program.
  • Growing Pipeline for Utility Solar Projects3: Utility-scale PV makes up the largest share of solar installations in the United States, with 1.4 GW coming online during Q1 2018. An additional 3.8 GW of planned utility PV projects were procured in Q1 2018, representing the first growth in the utility PV pipeline since Q2 2017. With several large proposals underway, such as Portland General Electric and Rocky Mountain Power’s request for 100 MW production facilities each, analysts expect to see continued growth in the utility-scale PV pipeline.
  • Blockchain technology enters the supply chain4: Blockchain, the technology most known for its use in cryptocurrencies, is becoming increasingly prevalent in energy systems today. A community program backed by blockchain enables the consumer to purchase power directly from local storage or the solar panels of their neighbors and reduce power network constraints at peak times. The idea of a decentralized energy system is appealing, however, further evolution of the regulatory model is needed.

This newsletter is a periodic compilation of certain capital markets information. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.


1 Devika Kumar, “EIA: US crude output dips in April to 10.467MMbpd,” Rigzone, June 29, 2018,, accessed July 10, 2018.

2 “Department of Energy invests $8.8 million in innovative technologies to enhance Fossil Energy Power Systems,” Department of Energy. June 30, 2018,, accessed July 10, 2018.

3 “US Solar Market Insight,” GTM Research, June 30, 2018,, accessed July 10, 2018.

4 David Flynn, “How blockchains can empower communities to control their own energy supply,” PHYS. July 12, 2018,, accessed July 10, 2018.

Did you find this useful?