new hire

Firm hires top Houston-based energy banker to grow energy transition team

Top Houston banker Stephen Trauber has joined publicly traded investment bank Moelis & Co. Image via Shutterstock

Houston energy dealmaker Stephen Trauber has been tapped as chairman and global head of the energy and clean technology business at publicly traded investment bank Moelis & Co.

In 2010, The Wall Street Journal called Trauber “one of the best-connected energy bankers in Houston.”

Trauber comes to New York City-based Moelis from Citi, where he recently retired as vice chairman and global co-head of natural resources and clean energy transition. Before that, he was vice chairman and global head of energy at UBS Investment Bank, where he worked with Ken Moelis, who’s now chairman and CEO of Moelis.

“The global energy ecosystem is undergoing major consolidation and change,” Trauber says in a Moelis news release. “I look forward to actively participating in its strategic evolution and working with so many of our clients that are evaluating how best to create value during this period of transformation.”

In conjunction with Trauber’s hiring, Guggenheim Securities executives Muhammad Laghari and Alexander Burpee are joining Moelis as managing directors in Houston. They’ll work with upstream and midstream oil and gas clients. Laghari and Burpee previously were colleagues of Trauber at Citi.

During his career, Trauber has advised on more than $700 billion in energy deals, including mergers, acquisitions, and IPOs. Among the industry heavyweights involved in those deals were BP, Halliburton, Kinder Morgan, Nabors, Occidental Petroleum, Schlumberger, Shell, and Weatherford International.

“Steve is a recognized leader in the industry who has played a key role in many of the energy sector’s landmark transactions,” says Navid Mahmoodzadegan, co-founder and co-president of Moelis.

Three years ago, Trauber made waves when Spring-based ExxonMobil

rejected his pitch “to commit to a target for net-zero emissions even after shareholders staged a revolt over the company’s climate policy,” Bloomberg reported at the time.

Last year, Trauber joined the board of directors of Houston-based NEXT Renewable Fuels, the board of directors of Houston-based ASEAN Energy, and the M&A and transactions advisory board of London-based professional services giant Aon.

The three new hires at Moelis follow the September 2023 launch of its Clean Technology Group. Arash Nazhad of Houston is co-leader of the group.

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A View From HETI

Meta's data center in Temple, Texas. Rendering courtesy Meta

Responding to public outcry, Gov. Greg Abbott has stepped up his campaign against data centers by temporarily halting approval of environmental permits for data center projects.

This and previous moves by Abbott essentially amount to a temporary freeze on the development of new data centers in Texas. His actions come at a time when Texas’ stature as a data center hub has been soaring.

On Monday, Abbott directed the Texas Commission on Environmental Quality to stop issuing permits for data center developments until the Electric Reliability Council of Texas (ERCOT) and Public Utility Commission of Texas complete their review of projects seeking power grid connections.

With regulatory reviews underway and environmental permitting now frozen, state regulators currently cannot approve or deny requests from data center developers, Abbott said.

In a letter to the environmental quality commission’s executive director, Kelly Keel, Abbott said this directive is “consistent with my whole-of-government approach to ensure Texans’ natural resources and way of life are protected.”

Abbott previously ordered the Texas Water Development Board to require data centers to meet reporting requirements for water use. He also told the board to impose penalties for failure to comply with those requirements and to collaborate with ERCOT on its review.

Abbott launched his crackdown on data centers in August by ordering the Public Utility Commission and ERCOT to review data center projects in Texas. The audits will examine all data centers in the queue for interconnections before any more projects can move forward. Interconnections enable data centers to share power, data and computing resources.

In calling for those audits, Abbott cited concerns over data centers’ use of water and electricity, and the centers’ effect on infrastructure expenses and consumers’ utility rates.

“Simply put, Texans must come first,” the governor said.

During next year’s legislation session, Abbott will push for the elimination of state financial incentives for data center projects.

Ed Hirs, an energy fellow ⁠at the University of Houston, told Reuters that Abbott was backtracking on “his earlier pronouncements about data centers leading to lower electricity prices.”

Abbott’s actions come amid growing public backlash over data centers. A recent University of Houston survey found that nearly 63 percent of Houston-area residents opposed construction of a data center within a mile of their home.

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