Court Square, Five Point bet on oil and gas; Exponent to invest in energy generation services biz; Salt Creek Capital acquires Craig Wire Products

Good morning dealmakers, it’s Obey Martin Manayiti here with the US edition of the Wire from the New York newsroom.

Surging global energy demand combined with a supply squeeze – driven largely by rising geopolitical tensions – is pulling private equity back toward traditional energy. Tensions in the Middle East are also adding to the appeal of oil and gas. In today’s Wire, we’ll look at eight deals that show growing momentum in traditional energy, and some of the factors inspiring the comeback.

Next, we have a couple of deal news announced this morning. First, and staying with the energy theme, Exponent has agreed to invest in OFS, an Ireland-based provider of specialist technical services for the global power generation industry.

To finish, Salt Creek Capital has acquired Craig Wire Products, a manufacturer of custom-specification shaped magnet wire serving electric motor, generator, and transformer original equipment manufacturers and aftermarket service providers.

Thrill of the drill

Private equity investment in US oil and gas turned a corner around 2022, as Russia’s invasion of Ukraine stoked geopolitical tensions and threatened to squeeze the global energy supply chain, reversing several years of decline.

Until then, many investors had been retreating from traditional energy amid pressure to cut carbon footprints and address climate change. Geopolitical tensions have only intensified with the Middle East crisis, and factors such as persistent inflation, rising fuel prices and a slower-than-expected rollout of clean energy have opened the door to renewed investment in traditional energy, be it drilling or supporting services.

I rounded up eight deals that show PE’s growing appetite for oil and gas. Below is an excerpt:

In August, Sunoco announced a definitive agreement to acquire Offen Petroleum, a Court Square portfolio company, in an all-cash transaction valued at $600 million. The deal is expected to close in Q4 2026.

Offen operates a fuel distribution network that delivers approximately 2.5 billion gallons annually, serving approximately 7,000 customers and over 800 retail stations across the Midwest, Mountain West and Southwest regions.

The expanded geographic footprint complements Sunoco’s existing fuel distribution operations and creates additional opportunities for organic growth and bolt-on acquisitions.

Court Square acquired Offen from Lariat Partners in 2019.

Also, San Mateo Midstream, a joint venture between Matador Resources Company and Five Point Infrastructure, in August closed a deal to acquire Cardinal Midstream Partners, a portfolio company of EnCap Flatrock Midstream, for $752 million. The deal was initially announced in June.

Based in Dallas, Cardinal is a midstream energy company that acquires, develops and operates infrastructure for the oil and gas sector.

San Mateo provides natural gas gathering, treating and processing; produced water gathering and disposal; and oil gathering and transportation services to Matador and third-party customers in the Delaware Basin in Southeast New Mexico and West Texas.

Check out the full piece to see more recent deal activity in traditional energy.

Power up

Exponent has agreed to invest in OFS, an Ireland-based provider of specialist technical services for the global power generation industry.

Co-founders Eric Kavanagh and Joseph Dunne will continue to lead OFS as the company works to meet rising demand from power generation, energy and data center customers worldwide.

Headquartered in Naas, Co. Kildare, with a US office in Houston, Texas, OFS has built its business over the past 20 years. Its engineers and technicians install, commission, maintain and operate industrial and aeroderivative gas turbines and related power generation equipment, often working directly for the original equipment manufacturers whose products it services. The company’s customers include Mitsubishi Power, Solar Turbines, Siemens, GE Power and Vantage.

“Structural growth across the global power market, combined with the emergence of on-site power as a core requirement for data centers, is creating a step-change in demand for OFS’s services,” said Shane Farragher, partner at Exponent, in the statement.

Custom products

Salt Creek Capital has acquired Craig Wire Products, a manufacturer of custom-specification shaped magnet wire serving electric motor, generator, and transformer original equipment manufacturers and aftermarket service providers.

Founded in 2007, Craig Wire operates from two ISO-certified facilities in Douglasville, Georgia, offering integrated drawing, rolling, annealing, covering, and enameling capabilities. The company serves customers in industrial motors, power generation, wind energy, and aerospace across the US, Canada and Mexico.

Hank Pennington will join Craig Wire Products as incoming CEO, succeeding founder Jack Craig.

Salt Creek Capital is a San Francisco Bay Area-based private equity firm that partners with operating executives to acquire companies with $5 million-$150 million in revenue, focusing on the lower middle market.

That’s it from me this morning. Craig McGlashan will bring you the Europe edition of the Wire on Wednesday, while Rafael Canton will write the next US Wire.

Cheers,

Obey