Gasonomics: Mergers and Acquisitions in the Energy Sector

The energy economy has been unpredictable as of late for a number of reasons, including the changing of federal administration in early 2021. As a result, the amount of mergers and acquisitions in the energy sector has been lower. How does this happen, what does it mean for current energy solutions, and what can be done to work around it?

On this episode of Gasonomics, host Tim Snyder speaks with Baron Lukas, who is not only a Principal and Program Manager at ExecHQ, but is also a retired Marine Corps Colonel. Both Snyder and Lukas understand the way the economy moves and how certain choices, as well as certain events, can cause things like mergers and acquisitions to lessen.

“The thought is that energy specifically has been on a decline for M&A activities since January of ’21, and certainly ’22,” says Lukas. “And the rest of the years that we’ve had the current administration, that number of transactions has declined quarter by quarter almost every quarter.

Snyder and Lukas also discuss:

-The effect of bank closures on mergers and acquisitions.

-The push toward electric energy by the federal government.

-The current geopolitical landscape with regards to energy.

“Energy in all sectors, except maybe renewables, has really taken a cut in terms of M&A activity and investment activity, but that can be said for most industries” says Lukas. He also points out that recent bank closures have made it hard for companies to get debt financing, which in turn prevents more mergers and acquisitions from taking place.

Baron Lukas served in the Marine Corps as a fighter pilot, intelligence officer, strategist, and commander, before becoming the Principal and Program Manager for ExecHQ. Bilingual in English and German, Lukas has over 40 years of experience in both military and corporate business operations.