For the past five years, over which

For more information about AMPAC Energy & Technology Research please visit www.ampacresearch.comFOR IMMEDIATE RELEASE January 4, 2017 Contact: Brad Meikle: 415-692-7730 Brant Hocke: 504-321-0428 [email protected] Veterans Launch Energy & Technology Research FirmThe energy industry has recently entered a new era when fuel-free energy sources are cost-competitive with conventional fuel sources. At the same time, the historically inefficient oil and gas industry has seen its own renaissance in the past five years, over which time costs in the same areas have come down 20-30% while increasing productivity by ~400%. Machine learning and AI are poised to drive the next stages of the revolution. These changes are transforming the fuel, utility, solar, storage, and technology vendor landscape in dramatic and unforeseen ways. Ampac is aiming to fill the need for truthful, objective research in energy. The firm’s process is a combination of proprietary primary research combined with critical thinking around the key emerging industry trends.In 2017, three of the largest regulated utilities saw their stock prices decline sharply (PCG, EIX, and SCG), unusual price moves for Investment Grade rated companies. PG halted its dividend due to exposure from the fires in Northern California, which left destruction and damage to more than 21,000 homes and 2,800 businesses. The main catalyst for utilities has been that regulators are taking a more active role after decades of broad complacency. Due to innovative technologies, and utilities exhibiting minimal regard for public interest, competitive threats and deregulation are emerging. Community solar, community choice aggregation, microgrids, and distributed generation are being adopted despite the pushback from the utilities. This deregulation will bear similarity to the Telecom Act of 1996, where transmission lines were made accessible to players beyond the monopoly utility.Utility scale solar and wind PPA’s are being signed at $20-40 per MWh today, levels that are completely unprecedented. Solar equipment prices have been declining for the last decade, creating massive elasticity of demand around the world. There are 80+ countries just beginning the adoption of both utility-scale and distributed solar. Grid reliability issues are being addressed through storage systems whose costs have fallen by 80% since 2012. Cheaper distributed electricity is driving an electrification of appliances and industrial equipment that have historically been gas-powered.Transportation is shifting towards EV & PHEV, driving up the price of lithium, cobalt, and other materials. Within a few years most auto suppliers will have 10+ PHEV models. Due to the existing 900 million cars on the road, and a vast existing infrastructure in place to serve these vehicles, the transition from carbon will be slower than the electricity sector.Within the Upstream Oil and Gas Sector, E&P companies and investors are emphasizing capital discipline and the generation of free cash flow. A focus on multi-zone manufacturing in 2018 should aid in these goals of growing with cash flows, however continuous improvements are mandatory to sustain this movement. Ampac’s research team will utilize its strong technical team and proprietary network to identify companies poised to succeed (and fail) across the sector. The team’s initial focus will be on the low-cost suppliers in the emerging Delaware Basin and STACK/CANA plays.The firm is founded by Brad Meikle and Brant Hocke, formerly with Coker Palmer Institutional. Brad is a proven renewable energy analyst, investor and developer for the past decade. Brant Hocke has been focused on Oil/Gas E&P & Oil Field Services research for the past 10+ years with Johnson & Rice and other New Orleans investment banks.

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