AEG Shopping Three Retail Energy M&A Opportunities in Texas, PJM, and New York

March 29, 2023

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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AEG Affiliated Energy Group Financial announced that it is shopping three retail energy M&A opportunities to prospective buyers

AEG said that it presently has opportunities as follows:

1. "Roughly 45,000 RCEs in ERCOT (Texas). This ERCOT business is about half mass market customers and half C&I customers in terms of load proportion. This has low concentration risk, and the C&I customers are on the smaller side of C&I, featuring a strong high‐quality 'sticky' book built over many years and with strong gross margins already locked in, 100% electricity."

2. "Smaller mass market book in PJM (all power in Pennsylvania and a smaller sum in New Jersey)."

3. "A roughly 40,000 RCE dual product business in New York and PJM, generating strong cash flows and EBITDA, and containing numerous competitive advantages and proprietary platforms."

AEG Financial can be reached at m-a@affiliatedenergy.com

AEG said certain of the opportunities noted above will probably be off the market (in exclusivity or otherwise locked up) by April 15

AEG said that it has closed three retail energy M&A deals recently

"AEG's team has learned as much from the failed attempts by buyers as AEG's successful closings, bolstering AEG's unique and proprietary database and views of which buyers and investors can actually get deals to the finish line, which buyers try to 're-negotiate or re‐trade' once they've locked up sellers, and which buyers endlessly kick tires or take so long (and ask so many unnecessary immaterial questions) that they're to be avoided if all else equal. Careful selection of buyers and investors with whom to 'walk down the aisle' is critical in closing deals in the present landscape and is often the difference in a good deal and no deal at all, which deal‐precedent and proprietary market data of AEG have aided recent counteroffer processes as well," said Rob S. Potosky, EVP of AEG's M&A Practice.

Deals closed by AEG as lead investment banking team in the past seven months include, as described by AEG:

1. "The sale of 100% of the North American assets of a UK‐based retail energy provider, circa September 2022."

2. "The sale of an almost 100,000 RCE retail energy business in December 2022."

3. "The sale of a large C&I retail customer gas business, with 100% C&I gas customers (in deregulated territories)."

"AEG Financial is thrilled to have helped so many clients thrive despite the enormous volatility in gas and power prices throughout 2022, successfully structuring and closing successful M&A deals in a number of different environments," said Potosky

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