Capstone’s energy team assists our clients in understanding the complex relationship between federal, state and local energy and environmental regulations in the US and between the European Union and Member state levels in Europe, including oil & gas, midstream & energy infrastructure, renewable energy and electric power markets. Our deep understanding of the federal and state arenas 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 global environment for energy regulators. 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 public market institutional investors across a range of strategies, from a discussion of proposed market reforms in key power markets to an analysis of Danish wind turbine manufacturers and services providers. We also work with private equity clients on a transactional basis, providing deep-dive regulatory due diligence for potential investments. 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 regulatory risk.
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 the key energy states that enable us to better understand the “on-the-ground” situation in each area. Our deep energy sector expertise positions us to assess the impact of these regulations on energy sector companies and securities.
Below, we highlight examples of select key areas across the energy industry continuum that are included within our expertise.