The energy sector is abuzz with the news of e2Companies’ strategic partnership with Nabors Energy Transition Corp II (NETD), a move that could significantly reshape the landscape of oilfield energy solutions. This alliance, announced on 10 December 2024, aims to create a publicly-listed entity, e2Companies, Inc (e2), set to trade on Nasdaq under the ticker “VUTL”. The transaction, valued at $500m in pre-money equity, will inject $400m into the new company, with $331m coming from NETD’s trust account and the rest from expected private placement proceeds. This financial infusion positions e2 with a pro forma enterprise value of around $770m and a pro forma equity value of $1bn, assuming no redemptions and expected private placement proceeds.
The partnership is not just about financials; it’s about combining strengths. e2Companies brings its Virtual Utility platform, which includes the R3Di system—a self-contained, grid-independent power solution compatible with various renewable sources. This technology is pivotal in addressing the unique energy demands of oilfields, a sector often overlooked in the broader energy transition narrative. Nabors, with its global expertise in oil, gas, and energy transition, complements e2Companies’ technological prowess. The collaboration is set to develop customised energy solutions tailored to the specific needs of oilfields, a market segment that requires robust, reliable, and often off-grid power solutions.
The implications of this partnership are far-reaching. Firstly, it underscores the growing importance of decentralised, resilient power solutions in the energy sector. As James Richmond, e2Companies’ executive chairman and CEO, noted, “Electric power demand is rising rapidly across a variety of sectors… exceeding historical highs and on pace to outstrip supply.” This trend is particularly relevant for data centres and industrial sectors, including oil and gas, which are increasingly electrifying their operations to meet decarbonisation goals. The R3Di system, with its ability to operate independently of the grid, offers a compelling solution to the challenges posed by the AI data centre boom and global electrification.
Secondly, the partnership highlights the strategic shift towards energy solutions that prioritise grid resiliency and reliability. As companies worldwide strive to decarbonise, the reliability of power supply becomes paramount. The Virtual Utility platform, with its focus on addressing grid infrastructure backlogs, positions e2 at the forefront of this shift. This is particularly relevant for oilfields, where power outages can have catastrophic consequences.
The transaction, expected to finalise in the third quarter of 2025, has been unanimously approved by the boards of directors of both companies. The continued leadership of e2Companies’ current management team, with all existing shareholders and management rolling 100% of their equity into the new entity, ensures continuity and alignment of vision.
Anthony Petrello, NETD president and CEO, expressed optimism about the partnership, stating, “We believe the business combination with NETD will further accelerate e2’s growth and deliver long-term shareholder value while furthering Nabors’ commitment to energy without compromise and the support of companies on the cutting edge of advanced energy technology.” This sentiment echoes the broader industry trend towards innovative, sustainable energy solutions that do not compromise on performance or reliability.
The partnership between e2Companies and NETD is more than just a financial transaction; it’s a strategic alignment of complementary strengths aimed at addressing critical energy challenges. As the energy sector continues to evolve, this collaboration could set a new benchmark for customised, resilient, and sustainable energy solutions, particularly in the oil and gas sector. The development could spur similar partnerships, driving innovation and accelerating the energy transition.
