Axial Network Activity Report: Energy & Utilities Q3 2012

The Energy & Utilities Network Activity Report examines the Opportunities managed on Axial in the first three quarters of 2012. In addition to reviewing this historical data, the report considers real-time data captured on November 30, 2012.

Thanks to Members Alex Koles of Reinvention Capital Advisors and Jeff Pendergraft of Galway Group for their commentary in the report.

Here are a few highlights from the report:

• In the first three quarters of 2012, the Energy & Utilities sector has experienced an uptick in M&A activity and interest. It is expected that a growing number of investors and private equity firms will continue to enter the space.
• The developing supply of natural gas resources has most likely contributed to the activity.
• Within the sector, the most significant activity has been occurring in the Energy Equipment & Services and Oil, Gas and Consumable Fuels industries.
• The renewable energy industry has been negatively impacted by the increasingly affordable and accessible natural gas.
• The likely expiration of renewable-related government subsidies in 2013 has also caused investor interest in alternative energy to dwindle.
• Investors appear to shy away from longer-term investments. The shorter timeframe causes investors to shy away from time-heavy investments, including renewables and oil fields & rigs.