Enverus And Blackstone Bet Big On The Energy Intelligence Revolution

Steve Schwarzman, chief executive officer of Blackstone Group Inc., listens during an interview in Tokyo, Japan, on Wednesday, Oct. 23, 2024. Schwarzman said the US is likely to avoid a recession regardless of who wins the presidential election, as both candidates have policy proposals that appeal to growth. Photographer: Kiyoshi Ota/Bloomberg

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In a landmark deal signaling a resurgence of private equity activity in the energy space, Blackstone, the world’s biggest alternative asset manager, announced on August 6 an agreement to acquire energy data analytics and SaaS giant Enverus. While the final sale figure remains officially undisclosed, multiple news reports peg the transaction at somewhere north of $6 billion, making it the second largest full private equity exit in software over the past three years and the largest of its kind in energy analytics.

“As the leading energy-dedicated SaaS platform, Enverus’ advanced analytics and technology solutions are critical for its customers as they navigate unprecedented AI-driven electricity demand growth and the broader energy transition,” Eli Nagler and Bilal Khan, Senior Managing Directors at Blackstone, said in a release. “We believe Blackstone’s energy market expertise and network can further enhance the company’s growth trajectory and look forward to working with [Enverus CEO Manuj Nikhanj] and the Enverus team.”

Whatever the exact dollar amount of the deal turns out to be, it’s a big number which sends a signal that the future of the accelerating energy expansion across the globe will be driven by equally accelerating access to data, intelligence, and service providers with the platforms to make sense of it all in real time.

A Strategic Match That Works Both Ways

Blackstone, led by co-founder, Chairman, and CEO Stephen Schwarzman, is not a company that is known to deal in trivialities. The firm has more than $1.2 trillion in assets under management and a track record of scaling some of the most iconic platforms in the software, infrastructure, and energy sectors.

Enverus was an obvious target for Blackstone because it might be the largest and fastest-growing energy SaaS and data platform in the world. With more than 8,000 customers across 50 countries – including 95% of U.S. oil and gas producers and a network of more than 40,000 suppliers – Enverus already provides a robust digital backbone for the energy industry. It’s invested almost $900 million in product innovation, AI, and go-to-market expansion, positioned at the intersection of upstream, power markets, digital infrastructure, and the energy transition, however it may develop.

For Blackstone, Enverus represents a sector-leading opportunity to influence how energy is discovered, developed, optimized, and traded over the years to come. The Enverus acquisition is a strong fit for Blacktone’s portfolio, leveraging Blackstone’s expertise in data-rich industries to scale the platform globally.

The deal is equally strategic from Enverus’ perspective. Blackstone has invested more than $25 billion in energy and $23 billion in energy transition. They understand the full energy stack — from exploration to grid optimization — and they clearly believe in Enverus’ mission, vision, and team.

Enverus is no stranger to the private equity world and has undergone several significant ownership transitions over the past decade. Insight Partners first invested in the company in 2012. In 2018, Genstar Capital acquired a majority stake from Insight. That was followed in 2021 by Hellman & Friedman, who took over majority ownership from Genstar at an enterprise value of $4.25 billion. Now, Blackstone’s acquisition marks the next chapter in the company’s growth.

“This is more than a transaction – it’s a launchpad,” Enverus CEO Manuj Nikhanj said. “Blackstone shares our conviction that the future of energy will be defined by AI, real-time intelligence, and bold execution. Their global reach and deep expertise across energy, infrastructure, and data-rich industries will accelerate our momentum – helping us scale faster, build smarter, and deliver transformational outcomes for our customers.”

Together, the two companies plan to accelerate everything AI-energy related. That means expanding and strengthening the platform, launching new GenAI-native innovations, entering new markets and segments, and delivering even greater value to customers. With 1,800 employees worldwide, Enverus is a major player and ready to scale – and believes Blackstone is the ideal partner to help make that happen.

Enverus’ Quarter Century of Evolution

Following the evolution of Enverus since its founding as DrillingInfo in 1999 has been a fascinating journey. A company which began as strictly a lease and permitting data provider to the Texas oil and gas industry has over the course of a quarter century expanded into one of the most diversified and robust providers of energy analytics in the world. It’s an extraordinary success story which will now continue with Blackstone.

The energy transition may not be proceeding according to the popularized narratives of the past five years, but there is no question that the world of energy is changing and expanding at a constantly accelerating pace. The companies that will lead that change will be the ones building the digital/AI infrastructure to make it all work smarter, faster, and cleaner.

Enverus is one of those companies. And with Blackstone behind it, the energy sector can expect much more disruption – and intelligence – in the years to come.