2022 DEALS THAT CAUGHT OUR EYE 👀

Good Afternoon. This is the Sunya Scoop. The newsletter that takes energy transition news and turns it into an easy-to-read email for you.

Welcome to the launch!

Here's what we got for you today:

• Deals that caught our eye in 2022

Let's get right into it.

1. BP acquires Archaea Energy for $4.1bn

• Absolutely massive deal that had a lot of people head scratching

• Archaea (and the Rice family) built a pure-play landfill gas giant. They leased up "the core" and built something that could not be duplicated. They built the Chesapeake Energy of landfill gas.

• With BP's move to energy transition investments and their massive downstream trading with Clean Energy, this was a natural fit.

• In terms of valuation, it will take years to find out how this plays out but one thing is for certain - BP is now poised to dominate the US landfill RNG business

2. Momentum Midstream Takes FID on 1.7 Bcf/d Haynesville Natural Gas Gathering, Carbon Capture Project

• Another great opportunity to decarbonize natural gas

• Energy private equity stepping in, with an anchor E&P like Chesapeake Energy, to create a natural gas processing plant that offsets its footprint via CCS

• Regardless if the monetization ends up being 45Q or just an avenue for Net Zero credit, imagine this is will be the first of many Haynesville CCS projects

3. Continental Resources makes $250mm strategic investment in Summit Carbon Solutions

• North Dakota, Harold Hamm and a whole lot of CO2

• One of the most straightforward plans - sequester CO2 in state with primacy and quality storage reservoir and collect low-cost feedstock

• Can see this setting a pretty interesting precedent with other projects underway:

• Step 1 - secure a string of pearls with high-purity emitters like ethanol and ammonia plants

• Step 2- partner with a big E&P who provides a checkbook and expertise to sequester

4. Chevron, Talos Energy and Carbonvert announce JV at Bayou Bend CCS project

• Majors getting in early

• With reports earlier in the year of Exxon buying up Denbury for $5bn to build their carbon capture division, it seems Chevron took another avenue: get in early

• Talos and Carbonvert were collectively early movers in Gulf Coast CCS

• Didn't take long before bringing in a strategic investment from Chevron which could pan out much more interesting than alternative capital

• Chevron JVed in the RNG space with Mercuria and Beyond6 in late 2021 and announced an intention to acquire the entire business, a year later

5. NET Power to go public via Rice Acquisition Corp II SPAC

• Yes, two Rice deals on the same list. A monumental 2022 for them.

• While it's still early days, the idea of making natural gas power plants carbon-free via carbon sequestration could be a game-changer for both the natural gas industry and provides a practical pathway to industrial decarbonization

• Combining the IRA incentives, these power plants could be almost completely subsidized by 45Q credits

• Time will tell but Danny Rice at the helm combined with a capital stack of strategic investors including Oxy, Baker Hughes and Constellation Energy give this the best chance of moon-shoot

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.