Latham & Watkins recently hosted its annual Executive Energy & Infrastructure conference in Austin, Texas. During the two-day event, more than 125 industry experts, policymakers, and thought leaders shared insights and discussed opportunities in the sector. Here are five key takeaways from this year’s event.
1. Opportunities Abound Amid Uncertainty
The energy and infrastructure industry continues to experience heightened volatility, with fluctuating oil prices and uncertainty around tariffs and supply, which makes strategic planning more challenging. However, companies that adapt quickly to dynamic market conditions can maintain resilience and capitalize on emerging opportunities.
2. Digital Infrastructure Driving Demand for Power
TThe rise of cryptocurrency mining and AI training facilities (among other factors) is significantly increasing the demand for power, necessitating innovative solutions to address utility bottlenecks and ensure reliable energy supply. This trend is driving investment in digital infrastructure, positioning it as a key growth area in the energy landscape.
3. Pumping Up Private and Hybrid Capital Investment in E&I
The sector is witnessing a rise in innovative private and hybrid capital structures, as investors increasingly seek creative financing solutions for energy and infrastructure projects. As momentum builds in private markets, sponsors can optimize capital structures and create strong opportunities for strategic investment.
4. Hydrocarbons Matter
Even with increased renewable energy production, hydrocarbons continue to remain important to meet current and future energy demands. The industry must balance the need for hydrocarbons with the increasing use of other energy sources in order to meet increasing energy demand.
5. Liability Management Exercises to Expand
Companies are increasingly turning to liability management exercises as a key strategy to navigate risk and extend operational timelines. This approach allows businesses to proactively manage liabilities and optimize their financial and legal positions amid economic uncertainty.
