Intercontinental Energy (“IEC” or the “Company”) is a Wyoming based LLC focused on investing and driving premium returns in energy and energy-related opportunities. The Company is a beneficial holding company; focused on discrete investments for the benefit of its investors.
Initially, IEC has potential investments in the energy fin-tech industry, the renewable natural gas industry and the oil and gas produced water industry. In each investment are existing businesses with proven management teams.
WHAT WE DO
Impacting the world through the intelligent deployment of energy
HISTORICAL SECTORS OF FOCUS
Electrical Generation & Transportation
Distressed asset acquisition & restructuring for premium and incentivized returns in the US, Caribbean and Central & Southern European markets.
Direct access to value-driven opportunities in US and foreign oil field fracking operations, focused on improving returns for capital intensive projects held major oil and gas producing clients. Current focus on Texas, Oklahoma and New Mexico.
Storage promises to be the critical infrastructure imperative for renewable market yields. IEC has advanced discussions with revolutionary storage technology developers.
Flexible Refining Assets
IEC has isolated distressed opportunities in crude oil refining in the US gulf region with enhanced feedstock flexibility, premium yields, and well-structured cost recoveries.
Merger & Acquisition Leadership
Energy market consolidation and economizing continues in the current market cycle and IEC intends to continue to take advantage of this trend.
EMERGING AND OPTIMIZING TECHNOLOGIES
Carbon Capture & Sequestration Consultancy
IEC’s joint venture with a specialized advisory team allows us to position investors in streamlined CCS projects throughout the United States with ownership attributes delivered in the form of multi-year tax credits. Each Round One $10m investment in assets identified by IEC is structured to procure a federal tax credit from the US Treasury Department for the investor of $3.5m each year for 12 years – a 35% return on investment commencing in year two of the investment.
NuScale SMR Nuclear Power
This developer of Small Modular Reactor (SMR) nuclear power plants is currently majority owned by Fluor Enterprises and available for acquisition. Since 2011, Fluor has secured $750m in US DoE grants and developed the commercial applications of its 50 MW power modules and secured its first commercial order. Fluor missed out on recent federal rounds of grants. IEC has been in in-depth discussions with NuScale’s management and foresees the opportunity to acquire a controlling interest in the company and advance it to the next level. Each power plant sale delivers a 26% return to investors.
IEC has identified an opportunity to acquire a premium value interest in this company which has developed a breakthrough technology to refine natural gas into efficient transportation fuels through procedures known as Oxidative Coupling of Methane (OCM) and Ethylene to Liquid (ETL) conversions at a significant premium over traditional oil refining production costs. Siluria recently inked a deal with Saudi Aramco to employ its technologies in certain of the world’s largest oil exporter’s facilities.
ITerum Energy Ltd.
This Isle of Man-based developer of waste-heat recovery and low temperature phase-change technologies and other proprietary alternative energy tools is seeking third-stage funding of $10m to develop supplier tooling, sales and marketing, inventory, assembly equipment and team development and project power module fabrication, construction and commissioning offering interest at 19.5% and long term equity returns of 15.5%.
NEAR TERM FOCUS AND OPPORTUNITIES
The IEC management team has developed a business model for success – strategic investing in key emerging or optimizing energy technologies and leading business turn-arounds in distressed energy companies that are proven energy revenue generators.
Our strategic framework to drive value is to procure interests in companies (a) undertaking prudent funding policies where there is adequate project liquidity, (b) employing a balanced mixture of debt and equity, and (c) pursuing strategic partnership to underwrite capital structures.
The last several months we have witnessed a dramatic shift in energy markets as well as the new economic reality brought on by the COVID 19 pandemic. These two factors have dramatically increased the company’s opportunities throughout the entire energy complex. We understand and are prepared to capture market opportunities based upon the following trend-set:
We have identified and conducted diligence on a dynamic list of potential deals to conclude due diligence. Those under review include:
Global Economic Trends
An Energy Market Re-set
A renaissance in the Supply Chain
Slower inflation but higher betas
Transparency initiatives abound
Cheap financing in major emerging markets
US Market Trends
Collapsing traditional, highly indebted G&T operators
M&A Opportunities flooding the market for strategic buyers
Vertical integration opportunities
Regulatory burdens easing
Optimizing technologies advancing
Distressed asset renewal opportunities
Numerous distressed/discounted acquisitions and investment opportunities in the energy markets will spring forward. These opportunities are ideal for the IEC business model.
P/E, EPS and EV/EBITDA multiples will weaken with Second Quarter Results becoming harsh realities.
Existing M&A transactions will restart with unique opportunities for shake-ups that are well positioned for cash injections and restructurings.