Our focus is on segment of the SPAC market that targets acquisitions with energy companies, either fossil fuel or renewable-sustainable. To obtain better understanding of multiple Energy SPAC performances we systematically examine their financial performance in general and around major event dates such as announcement of the merger and merger event, their governance structure, and their relationship with oil price uncertainty. To achieve that, we build on three segments of financial economics literature: (i) SPACs literature, (ii) corporate governance literature and its segment examining how board and CEO characteristics impact mergers and acquisitions (M&A) returns, and (iii) literature on oil price uncertainty. The study has important practical implications for both investors and policymakers. First, as Energy SPACs create significant value around the announcement of a merger, investors seeking short-term gains might consider entering the market at early stage of SPACs lifecycle. However, investors should be cautious of the timing and consider exiting before the merger is finalized, since results show that long-term performance is notably poor. Second, corporate governance factors, such as the nationality of the CEO, significantly influence the performance of Energy SPACs. Thus, investors should carefully examine the corporate governance structure, while preference might be given to SPACs with domestic leadership or stronger corporate governance practices. Finally, policymakers and financial regulators need to be aware of the long-term underperformance of Energy SPACs. Encouraging better governance practices or investor protections might improve outcomes for stakeholders in the future.

2025