Company: AEAQ
Filing Date: 2025-08-29
Form Type: DRS
Source: 0001213900-25-081972
Chunk: 26

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-08-29
Form: DRS
Chunk 26
---
 performance. Industry Opportunity We believe our team’s extensive and diversified experience in the energy sector positions us well to evaluate acquisition targets across the energy value chain. Several key factors continue to make energy assets compelling: Strong Core Industry Fundamentals. Forecasts for crude oil and natural gas indicate sustained demand growth. In response to recent periods of commodity price volatility — driven in part by oversupply and the COVID -19pandemic — exploration and production (E&P) companies have curtailed capital expenditures. Natural gas, in particular, is widely recognized as a transition fuel toward more sustainable energy sources. The United States has emerged as a global leader in natural gas development and is a rapidly expanding exporter of liquefied natural gas (LNG). Investor sentiment in the E&P sector has shifted from a focus on production growth to disciplined capital allocation, prioritizing total shareholder returns and capital distributions. Large Target Market. The energy industry, particularly E&P, remains highly fragmented, comprising hundreds of companies ranging from start -upsto multinationals. Many non -investment -gradefirms have experienced financial distress due to excessive leverage, prompting operational restructurings and asset divestitures. Asset sales have historically served as a key 8 funding mechanism in the sector. We believe that current constraints on capital and a subdued M&A environment have left many companies — both public and private — unable to fully capitalize on their asset bases, presenting strategic acquisition opportunities. Lack of Competition. Geopolitical uncertainty and capital flight have adversely impacted many energy companies’ access to financing. Public and private equity and debt investors have significantly reduced their exposure to the sector. This exodus has created a window of opportunity for energy -focusedspecial purpose acquisition companies (SPACs) to pursue acquisitions in what we believe is a buyer’s market. Management Experience. Success in the energy sector requires core competencies across five critical domains: subsurface technical expertise, operational execution, commercial strategy, financial management, and public market readiness. Our management team brings strong capabilities and a global track record in each of these areas. Investment Approach Following the completion of this offering, our team intends to launch an extensive outreach program across its network of industry relationships to communicate the parameters of our acquisition strategy. This process will initiate the identification, evaluation, and pursuit of potential business combination opportunities. We will leverage the following competitive advantages in our efforts: Proactive and Proprietary Transaction Sourcing. We believe our team’s track record of building high -growthbusiness platforms, combined with our proactive deal sourcing approach and extensive relationship network,