Houlihan Lokey, Inc. · NYSE:HLI
Houlihan Lokey — Investor Presentation (July 2025)
23 slides from Houlihan Lokey's investor presentation, July 2025
Slide 1: PJM 2026/2027 Capacity Auction Overview
PJM 2026/2027 Capacity Auction July 2025 Overview
Slide 2: Table of Contents
Table of Contents 01 02 03 04 Houlihan Lokey PJM 2026/2027 PJM Thermal Appendix Power, Utilities, and Capacity M&A Renewables Auction Transactions Coverage
Slide 3: Houlihan Lokey Power, Utilities, and Renewables Coverage
Houlihan Lokey Power, Utilities, and Renewables Coverage
Slide 4: Houlihan Lokey Is the Global Leader in Financial Advisory
Houlihan Lokey Is the Global Leader in Financial Advisory Houlihan Lokey is the trusted advisor to more top decision-makers than any other independent FY 2024 Advisory Revenue(3) ($B) global investment bank. $3.5 $3.3 CORPORATE FINANCE FINANCIAL RESTRUCTURING FINANCIAL AND VALUATION ADVISORY $2.4 $2
Slide 5: Our clients benefit from our local presence
No. 1 Global M&A Advisor (1) No. 1 Global Restructuring Advisor No. 1 Global M&A Our clients Fairness Opinion Advisor Over the benefit from our Past 25 Years (2) local presence Leading Capital Solutions and global reach. Group AMERICAS Atlanta Los Angeles EUROPE AND Amsterdam Manchester ASIA-PACIFIC
Slide 6: Houlihan Lokey Power, Utilities, and Renewables Team
Houlihan Lokey Power, Utilities, and Renewables Team Specialist and International Support Featured Transaction Experience Transaction Pending Matthew Mazzucchi Xander B. Hector Vamsi Manda Spencer Anderson Jason Hill Brian Pryor Matteo Manfredi Frontera Energy Center, Olympus Power, LLC has Potomac
Slide 7: Comprehensive Coverage of Power, Utilities, and Renewables
Comprehensive Coverage of Power, Utilities, and Renewables Our Service Offerings Houlihan Lokey’s Power, Utilities, and Renewables team offers a broad range of services to every facet of the power industry. The power sector has evolved from traditional vertically This energy transition has Houlihan
Slide 8: Featured Power, Utilities, and Renewables M&A and Financing Experience
Featured Power, Utilities, and Renewables M&A and Financing Experience Houlihan Lokey has Transaction Pending extensive experience advising on transactions in Frontera Energy Center, Lumio Holdings, Inc. has sold Olympus Power, LLC has Atlas Holdings, LLC has completed the Maxeon Solar Technologies,
Slide 9: Transaction Case Study: Potomac Energy Center
Transaction Case Study: Potomac Energy Center Houlihan Lokey acted as exclusive financial advisor to Illustrative PJM CCGT Purchase Transaction Summary Potomac Energy Center (Potomac), a 774 MW natural- Price Comparison(1)(2) ($/kW) Virginia withdrew from the gas-fired combined cycle (CCGT) power pl
Slide 10: PJM 2026/2027 Capacity Auction
PJM 2026/2027 Capacity Auction
Slide 11: 2026/2027 Capacity Auction Results (1/4)
PJM: 2026/2027 Capacity Auction Results (1/4) The 2026/2027 PJM BRA cleared at an all-time high due to a confluence of factors. 2026/2027 PJM Capacity Auction Results ● The 2026/2027 BRA produced a price of $329.17/MW-day for PJM’s entire footprint, clearing at the maximum FERC approved price cap. ●
Slide 12: 2026/2027 Capacity Auction Results (2/4)
PJM: 2026/2027 Capacity Auction Results (2/4) The $329.17/MW-day 2026/2027 capacity price is significantly higher than the 10-year average capacity prices. PJM Capacity Prices by Delivery Year(1) ($/MW-day UCAP) RTO MAAC EMAAC 329.17 PJM requests FERC 10-Year Average Capacity Price to allow delay of
Slide 13: 2026/2027 Capacity Auction Results (3/4)
PJM: 2026/2027 Capacity Auction Results (3/4) Numerous factors contributed to the $329.17/MW-day clear, including higher forecasted peak load and tightening reserve margins. Cleared and Targeted Reserve Margin 23.3% (%) 22.4% 21.5% Cleared (%) 20.3% 19.9% 20.3% 20.4% 18.5% 19.1% 19.7% 19.8% Targeted
Slide 14: 2026/2027 Capacity Auction Results (4/4)
PJM: 2026/2027 Capacity Auction Results (4/4) Detailed PJM Supply and Capacity Change Ledger for BRAs Tight supply-demand conditions continue to affect clearing prices, and even Existing PJM Capacity Supply (UCAP) minute factors can shift the final clearing point. Plus: Capacity Additions Less: Reti
Slide 15: ELCC Effects and Capacity Auction Timeline
PJM: ELCC Effects and Capacity Auction Timeline Preliminary Administrative Price Cap and Floor Sensitivity The 2027/2028 Base Residual Auction is set to take place in early December with Cap Floor Δ results posted on December 17, 2025. Based on current ELCC Class Ratings, it would $256.75 $138.25 ($
Slide 16: Increasing Peak Load Growth Forecasts
PJM: Increasing Peak Load Growth Forecasts Factors Driving PJM Power Surge Over the past decade, peak load forecasts in PJM have reached unprecedented The explosion of AI workloads, cloud storage, and high-performance levels driven by data centers, the resurgence of manufacturing, electrification co
Slide 17: PJM Thermal M&A Transactions
PJM Thermal M&A Transactions
Slide 18: Featured CCGT M&A Transactions
PJM: Featured CCGT M&A Transactions 2025 has seen valuations for PJM CCGTs pushed to all-time highs. Estimated Value Range $1,397 $1,100 $1,292 $1,350 $/kW Multiple $1,269 $740 $780 to $851 $702 to $742 $700 Post 2025/2026 Median: $1,292/kW Pre 2025/2026 Median: $741/kW Post-2025/2026 BRA Moxie Oreg
Slide 19: Featured GT M&A Transactions
PJM: Featured GT M&A Transactions PJM peaking facilities are expected to see an asset revaluation cycle after years of muted capacity prices and oversupply. $/kW Multiple $795 +161% / +$490/kW Median: $264/kW $375 $305 $264 $305 $256 $232 $103 $30 Post-2025/2026 BRA Rolling Lincoln Rolling Lincoln a
Slide 20: Appendix
Appendix @
Slide 21: Glossary and Key Formulas
PJM: Glossary and Key Formulas Key Terms Key Formulas 1. Pennsylvania-Jersey-Maryland Interconnection LLC. PJM and LDAs UCAP UCAP = ICAP * ELCC * Resource Performance Adjustment 2. Locational deliverability area or region in PJM. 1. Base Residual Auction conducted to secure capacity. Monthly Revenue
Slide 22: Disclaimer
Disclaimer © 2025 Houlihan Lokey. All rights reserved. This material may not be reproduced in any format by any means or redistributed without the prior written consent of Houlihan Lokey. Houlihan Lokey is a trade name for Houlihan Lokey, Inc., and its subsidiaries and affiliates, which include the
Slide 23: HL.com
Corporate Finance Financial Restructuring Financial and Valuation Advisory HL.com