FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: NextEra to Buy Caliber Resource for $1.3 Billion; Form Shale JV With Quantum

By

NextEra Energy (NEE), the world's largest electric utility, has reportedly agreed to acquire Caliber Resource Partners, a US-focused oil and gas investment firm, in a $1.3 billion deal, according to a Reuters report, citing four separate sources familiar with the matter.

Additionally, NextEra will setting up a joint venture with Caliber's private equity backer, Quantum Capital Group, to manage the former's US shale assets.

This comes just days after the company announced its merger with Dominion Energy (D), in a deal worth $67 billion, making the combined entity, the largest supplier of power to data centers.

Under the deal, a NextEra subsidiary would acquire Caliber's portfolio of passive interests across multiple US onshore shale assets. These non-operated stakes allow investors to receive production revenue while avoiding direct responsibility for drilling operations.

The new joint venture with Quantum will focus on additional investments aimed at expanding NextEra's portfolio of natural gas producing assets.

This comes amid soaring energy demand from AI data centers, with natural gas-fired power generation emerging as a key source of supply.

Neither NextEra, nor Quantum Capital Group immediately responded to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Commodities

US Natural Gas Update: Futures Pull Back From 8-Week High on Cooler Forecasts

US natural gas futures pulled back on Wednesday after a string of gains pushed prices to an eight-week high, as forecasts for milder weather reduced expected cooling demand and offset support from rebounding LNG feedgas flows.The front-month Henry Hub contract and the continuous contract both fell 2.6% to $3.033 per million British thermal units.After a heatwave swept through major population centers in the Mid-Atlantic and Northeast earlier this week, forecasts now call for cooler temperatures heading into the Memorial Day weekend beginning Thursday.After peaking in the 90s on Tuesday and Wednesday ahead of the holiday weekend, a cold front is forecast to push daytime highs into the low 70s on May 21, then drop further into the mid-50s to low 60s degrees Fahrenheit from May 22 through May 24, accompanied by heavy rain.Temperatures are then expected to return to 70-80 degrees Fahrenheit by May 28-30. Overnight lows are forecast to remain mostly around 50-60 degrees Fahrenheit.Barchart, citing BNEF data, said that while heat lingered across much of the US on Wednesday, Lower 48 gas demand rose to 73 billion cubic feet per day, up 800 million cubic feet per day from the previous day and 4.1% higher than a year earlier.Celsius Energy estimated power-sector gas burn at 26.3 Bcf/d on Wednesday, up 2.4 Bcf/d from Tuesday and 7.3 Bcf/d above year-ago levels.LNG feedgas demand also strengthened after hitting a multi-month low on Tuesday due to seasonal maintenance. Net flows to US LNG export terminals climbed to 18.1 Bcf/d on Wednesday, up 2.5 Bcf/d from Tuesday and 3% above last week's level as Sabine Pass and Freeport resumed normal operations, Aegis Hedging said.US Lower 48 dry gas production averaged 109.3 Bcf/d on Wednesday, according to BNEF data cited by Barchart, up 1.1 Bcf/d from Tuesday and 1.4% higher than the same period last year.Ample domestic gas supplies and expectations for continued storage builds also weighed on prices.Barchart said consensus estimates for Thursday's weekly US Energy Information Administration storage report call for an injection of 98 Bcf for the week ended May 15, above the five-year average build of 92 Bcf.NRG Energy and Gelber & Associates expect builds of 95 Bcf and 96 Bcf, respectively. Analysts polled by the Wall Street Journal expect a near-normal 95 Bcf injection, which would put inventories 143 Bcf above the five-year average and 27 Bcf above the year-ago level, the paper said.

Commodities

EU Clears USS, Munich Re, CVC DIF Deal for Encyclis Ireland Assets

The European Commission approved the joint acquisition of Encyclis Ireland Assets by USS, Munich Re, and CVC DIF under the EU Merger Regulation, the regulator said Wednesday.Universities Superannuation Scheme of the UK, Munich Re of Germany, and Netherlands-based DIF Management B.V., which operates as CVC DIF, are acquiring joint control of the Irish company, the commission said.The transaction mainly covers Ireland's waste-to-energy sector.The commission said the deal will not raise competition concerns because the companies do not operate in overlapping or vertically connected markets.

Commodities

Industrial Electrification to Drive Nearly Half of US Load Growth by 2035, Enverus Says

US electrification could add 24 gigawatts of incremental power demand by 2035 and 78 GW by 2050, Enverus Intelligence Research said in a Tuesday analysis.Electrification should account for about 4.1% of total US electricity demand by 2035 as industries and buildings replace fuel-based systems with electric alternatives, the analysis said.PJM Interconnection, Midcontinent Independent System Operator and New York Independent System Operator should capture 69% of added load by 2035 because of strong industrial demand and heating transitions, Enverus said.The analysis expects some regions to post flat or declining demand as efficient heat pumps offset new electricity consumption and reduce overall energy use.Senior analyst Kevin Kang said industrial demand and heating transitions are emerging as major drivers of US electricity load growth, with impacts expected to vary significantly across regional power markets."At the same time, efficiency gains and regional differences in heating technology mean the impact on load is not uniform and will reshape grid dynamics, including increased winter sensitivity and market volatility," Kang said.Industrial electrification should contribute 11.4 GW of incremental demand by 2035, representing 47% of total projected load growth.Commercial sector should add 6.8 GW, or 29% of demand growth, while residential electrification should contribute another 5.7 GW, or 24%, Enverus said.Regions with heavy gas and oil heating use should see stronger power demand growth, while efficient heat pumps may reduce load growth in areas using electric resistance heating, Enverus said.State electrification mandates could increase load growth by 27% in ISO New England and 21% in New York ISO by 2035 while also increasing winter market volatility, according to Enverus.