THE TEXAS BRIEF
Good morning, Texans!
Capex and power contracting moved back to the front of the operator agenda as Texas finalized the incentive framework for Eli Lilly’s $6.5B northeast Houston manufacturing plant while Big Tech power procurement continued scaling through long-dated nuclear agreements tied to AI buildouts.
Real asset timelines also firmed up. San Antonio advanced $1.2B plans for Terminal C, and University Health set a 2027 opening window for two hospital campuses totaling $1.5B, signaling sustained construction, procurement, and labor demand. Deal activity remained active with a $1B Topgolf Callaway stake sale and continued insurance consolidation in Houston. On the risk side, operational disruptions at Freeport weighed on Olin’s outlook — a reminder that reliability and throughput still drive earnings more than narratives.
TEXAS BUSINESS MOVES
1. Tax agreement finalized for Eli Lilly’s $6.5B Houston-area plant
Texas finalized incentives for Lilly’s 236-acre pharmaceutical manufacturing project in northeast Houston, including new details on expected average annual wages. → Link
Why it matters: This is a long-duration manufacturing build that will pull labor, specialty contractors, and supply-chain capacity into the Houston market.
2. Topgolf Callaway completes $1B majority-stake sale to private equity
Topgolf Callaway closed the sale of a majority stake to a private equity firm following recent venue growth, including a New Braunfels location. → Link
Why it matters: A new control owner can accelerate unit growth, real-estate decisions, and vendor consolidation across Texas markets.
3. San Antonio airport Terminal C plans filed for $1.2B expansion
Construction plans for San Antonio International Airport’s Terminal C outline expanded retail space and major infrastructure upgrades tied to the $1.2B project. → Link
Why it matters: Major airport expansion tightens competition for contractors and directly affects regional logistics and travel capacity.
4. University Health sets timeline for $1.5B San Antonio hospital buildout
University Health detailed timing for two new hospital campuses in underserved areas and named leadership teams ahead of a 2027 opening. → Link
Why it matters: Health-system expansion drives multi-year demand for construction, clinical staffing pipelines, and adjacent private development.
5. Texas-based energy-tech operator Otovo enters California via acquisition
Otovo expanded into the California residential solar market through an acquisition while targeting major customer growth. → Link
Why it matters: Texas operators scaling out of state can shift capital allocation, hiring priorities, and platform strategy at home.
6. Trucordia acquires Houston’s First Texas Agency
Utah-based Trucordia, a top-20 U.S. insurance firm, acquired First Texas Agency to expand its Houston footprint. → Link
Why it matters: Continued consolidation can reshape commercial insurance pricing, service levels, and broker relationships for Texas businesses.
Secondary Signals (Still Worth Knowing)
Vistra signed a 20-year agreement to provide Meta more than 2.6 gigawatts of nuclear energy. → Link
Olin cut its Q4 outlook by nearly 40%, citing operational disruptions at its Freeport plant and weaker demand in a key segment. → Link
Whitestone REIT faces shareholder pressure and a proposed deal valued around $1.42B including debt amid a board challenge. → Link
Corpus Christi is drilling new wells after abandoning a desalination project, raising concerns about regional water security. → Link
Texas proposed steep licensing-fee increases for retailers and manufacturers selling hemp-derived THC products. → Link
Carrollton approved rezoning for its first H-E-B location as the grocer continues DFW expansion. → Link
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— Robert
Editor, Texas Operator