The cover story for the May issue of American Gas magazine, titled “Investments Abound” discusses the changing energy landscape and the possibilities for growth and opportunity that exist.
In this rapidly changing industry, many of the remaining silos that once separated energy sectors are disappearing. In October 2015, Duke Energy made headlines when it announced its $4.9 billion acquisition of its Atlantic Coast Pipeline Partner, Piedmont Natural Gas. Additionally, the proposed $12 billion Southern Co.-AGL Resources merger is expected to create the United States’ second-largest utility by customer base, with approximately nine million utility customers in nine states.
Furthermore, with an attractive regulatory environment and presence of quality assets, the United States is a prime market for Canadian investors. Canadian-based Emera’s $10.4 billion acquisition of TECO Energy, approved by the Federal Energy Regulatory Committee this past January, reflects the strong interest abroad in U.S.-regulated assets. TransCanada’s bid for the Columbia Pipeline Group further shows how foreign energy companies view competing in the American market as a real opportunity to grow investments.
Merger-and-acquisition activities have had a hand in rejuvenating the investment portfolios of the stakeholders of many natural gas and utility companies in the United States and those across its northern border. Combined with global environmental and economic factors, the changing investment landscape could add a new dimension to what it means to be an energy provider in America.
To learn more, you can read the American Gas article here.