M&A Moves

Houston energy services company acquires carbon capture, storage biz

In M&A news, Buckeye Partners has acquired a carbon capture and storage company from Oklahoma. Photo via Getty Images

Another Houston energy company has announced an acquisition in the carbon capture space.

Buckeye Partners, a Houston-headquartered energy infrastructure and logistics provider, announced this week that it has acquired Oklahoma City-based Elysian Carbon Management from EnCap Flatrock Midstream. The terms of the deal were not disclosed.

Elysian, founded in 2018, secured an initial capital commitment of $350 million from EnCap Flatrock Midstream in 2021. The company's technology includes end-to-end carbon capture and storage solutions.

“This acquisition reflects Buckeye’s commitment to continue to provide essential infrastructure and logistics solutions to meet our customers’ evolving needs in the energy transition,” say Buckeye CEO Todd Russo in a news release. “Rapidly developing CCS-related technologies and solutions offer abundant synergies across Buckeye’s project development capabilities and existing pipeline network and are essential to enabling the energy transition’s success."

With the acquisition, Russo continues, the Elysian team will join the Buckeye platform to integrate the two companies' expertise. Per the release, Buckeye hopes to become a net-zero energy business by 2040, across scope 1 and 2 GHG emissions.

“Buckeye continues to demonstrate resiliency and emissions-reduction results across its increasingly diversified energy solutions portfolio,” says Elysian CEO Bret Logue in the release. “We’re fully aligned with their decarbonization mission and look forward to adding immediate value to Buckeye’s customer base and their momentum in the energy transition by integrating CCS technologies across the energy value chain.”

Less than a week before Buckey's M&A news, ExxonMobil announced its acquisition of a carbon capture company in a $4.9 billion deal.

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A View From HETI

CenterPoint customers in the Houston area will pay an extra $1 a month to cover costs of the recently approved $2.9 billion resiliency plan starting next year. Photo via centerpointenergy.com

Texas utility regulators have given the green light for Houston-based CenterPoint Energy to spend $2.9 billion on strengthening its Houston-area electric grid to better withstand extreme weather.

The cost of the plan is nearly $3 billion below what CenterPoint initially proposed to the Public Utility Commission of Texas.

In early 2025, CenterPoint unveiled a $5.75 billion plan to upgrade its Houston-area power system from 2026 through 2028. But the price tag dropped to $2.9 billion as part of a legal settlement between CenterPoint and cities in the utility’s service area.

Sometime after the first quarter of next year, CenterPoint customers in the Houston area will pay an extra $1 a month for the next three years to cover costs of the resiliency plan. CenterPoint serves 2.9 million customers in a 12-county territory anchored by Houston.

CenterPoint says the plan is part of its “commitment to building the most resilient coastal grid in the country.”

A key to improving CenterPoint’s local grid will be stepping up management of high-risk vegetation (namely trees), which ranks as the leading cause of power outages in the Houston area. CenterPoint says it will “go above and beyond standard vegetation management by implementing an industry-leading three-year trim cycle,” clearing vegetation from thousands of miles of power lines.

The utility company says its plan aims to prevent Houston-area power outages in case of hurricanes, floods, extreme temperatures, tornadoes, wildfires, winter storms, and other extreme weather events.

CenterPoint says the plan will:

  • Improve systemwide resilience by 30 percent
  • Expand the grid’s power-generating capacity. The company expects power demand in the Houston area to grow 2 percent per year for the foreseeable future.
  • Save about $50 million per year on storm cleanup costs
  • Avoid outages for more than 500,000 customers in the event of a disaster like last year’s Hurricane Beryl
  • Provide 130,000 stronger, more storm-resilient utility poles
  • Put more than 50 percent of the power system underground
  • Rebuild or upgrade more than 2,200 transmission towers
  • Modernize 34,500 spans of underground cables

In the Energy Capital of the World, residents “expect and deserve an electric system that is safe, reliable, cost-effective, and resilient when they need it most. We’re determined to deliver just that,” Jason Wells, president and CEO of CenterPoint, said in January.

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