Independent Power Producers: Sparks & Quarks: PJM Capacity Auction Underscores Robust Fundamentals; WMB Announces Power Innovation Funding; News Flow; IPPs Lead

Research evidence excerpt

Independent Power Producers: Sparks & Quarks: PJM Capacity Auction Underscores Robust Fundamentals; WMB Announces Power Innovation Funding; News Flow; IPPs Lead

exible power capacity as AI hyperscalers increasingly seek

speed-to-market solutions. Notably, this builds on a long-standing SLB-LBRT

relationship rather than a cold start (former SLB EVP/CFO Simon Ayat and SVP of IR

James McDonald both currently serve on the LBRT Board of Directors), and both parties

have already hit the ground running on the underlying demand for capacity, with SLB

having shipped 1.3 GW of prefab modular infrastructure since April 2024 (cumulative

deliveries expected to exceed 2 GW globally by YE26) and LBRT planning to deploy ~3

GW of power projects by YE29 (no change to prior guidance). The immediate read is

constructive, and we think this announcement makes strategic sense for both companies:

the alliance monetizes existing capability stacks against similar secular tailwinds. We

would flag that the announcement is light on economics, revenue-share, and capital

commitment details, and would look for management to frame contributions in their

respective upcoming 2Q26 prints.

• KGS Turbine Order Anchors BTM Buildout; Contracting in

Focus. As expected, KGS announced a multi-year strategic agreement with BKR for up

to 1.8 GW of power generation capacity, anchored by an initial ~1 GW equipment award

delivered by 2030. The deal provides clear line of sight to KGS's ~2 GW distributed

power target, and features NovaLT16 and Frame 5 turbines alongside BRUSH

generators. We see the KGS solution offering customers a flexible combination of turbine

and reciprocating solutions tailored to individual load profiles and deployment timelines.