ENERGY AND ENVIRONMENT

Capstone's energy team assists our clients with understanding the complex relationship between federal, state and local energy and environmental regulations and the North American energy sector, including oil and gas, midstream and energy infrastructure, renewable energy and electric power markets. Our deep understanding of the federal arena, in addition to the state capitals - where a significant portion of energy regulation takes place - brings unique insights to our clients in unpacking the complex patchwork of energy market regulations and understanding the tailwinds and headwinds they create for investments in the energy sector.

 

Tectonic changes to the fundamentals of energy exploration and development, distribution and consumption have led to a vibrant and ever-changing environment for energy regulators at the federal and state levels. Our energy analysts combine deep industry knowledge with a nuanced and in-the-weeds understanding of energy policy - gained through extensive research and combined with conversations with key policymakers and industry stakeholders - to produce actionable insights and investment ideas for institutional investors across a range of strategies. We also work with private equity clients on a transactional basis. Our due diligence assessments frequently include probability-weighted scenario analyses on potential regulatory outcomes and their impact to an investment target to help clients better understand the regulatory risks.

 

We have built relationships with key regulators at agencies including the Environmental Protection Agency (EPA), the Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE) to stay ahead of the curve in identifying and understanding policy trends in the energy sector. We also have strong networks in key energy states- including Texas, Colorado, Oklahoma and Pennsylvania- that enable us to better understand the "on-the-ground" situation in each area. Our deep sector expertise positions us to assess the impact of these regulations on energy companies and securities.

 

Selected Issues:

  • Power- Wholesale power markets, climate/environmental policies and state subsidy programs
  • Oil and Gas - Federal, state and local
  • Midstream Energy Infrastructure - Oil and gas pipelines, electrical transmission and railways
  • Renewable energy and renewable fuels - Solar, wind, renewable energy financing, biofuels and tax policy