Wes Williams, Ike Emehelu Quoted by Law360 on 2023’s Energy Transaction Activity
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For its article “No Shortage Of Action For Energy Deal-Makers In 2023,” Law360 quoted Akin energy practice co-head Wes Williams and projects and energy transition practice co-head Ike Emehelu. The article looks at what the publication calls an “eventful” year for energy sector deal-makers.
On energy sector acquisitions such as the $59.5 billion deal closed by ExxonMobil Corp. and a $53 billion acquisition by Chevron Corp., Wes said that these might lead observers to consider them one-offs, but the scarcity value of remaining independent drillers and the growing need for smaller companies to find partners in order to remain competitive indicate there will be more mergers in 2024. He added, “They may not be as large, but you’ll continue to see more consolidation, probably with more midsize public companies.”
Regarding guidance issued in June regarding the Inflation Reduction Act’s transferability provisions, which cover 11 new or expanded energy tax credits, Ike noted, “We’re seeing some transactions that would view the tax credits as currency. You make an offer to buy the asset, and part of the price includes the value of the transfer.”
