The fall in oil prices has seen a commensurate rise in energy assets for sale as companies strive to deleverage and refocus their portfolios. While some areas, such as the Permian, are seeing a flurry of activity, elsewhere activity is hampered by a lack of access to capital. Deal activity is slowly increasing, however, led by private equity buyers and majors/NOCs with sizeable cash reserves. Oil price volatility has made it difficult for participants to achieve consensus on value and outlook, and the shortage of availability of equity and debt financing has meant that IOCs have been experiencing liquidity issues.
IHS Markit experts offer a suite of comprehensive technical and commercial due diligence services to help you evaluate hydrocarbon investments and M&A opportunities. Our approach to due diligence is very strategic in that we pay particular attention to the underlying assumptions that drive value. IHS Markit is uniquely positioned to integrate subsurface, costs and development, technological and commercial evaluation. We provide an independent view that helps our clients to maximize their global investments.
Find answers to questions, such as:
- What are the key value drivers and strategic intent behind this M&A deal?
- What is the technical quality of the asset(s) for sale?
- What are the key technical and commercial risks and upsides associated with the investment?
- What’s the size of the market into which I am about to buy?
- What will it cost to develop this asset?
- What is the business environment and regulatory landscape?
Click to Enlarge
Our experts can help you assess the value of a specific oil or gas asset (portfolio or company). We generate and validate critical assumptions for evaluation, such as production profiles, development costs, pricing and macroeconomic outlooks. We also provide an independent value assessment through customized valuation models that combine detailed discounted cash flow and multiples-based evaluations.
IHS Markit upstream consultants provide support from bid to post-acquisition:
- Screening of potential opportunities
- Help with origination efforts
- Support through transaction execution phase
- Negotiation support
- Board approval support and validation of investment decision
- Ongoing support for managing portfolio assets including (but not limited to):
- Project development
- Regulatory compliance, risk analysis and quantification
- Technical/reservoir management
- Cost estimation
- Ongoing energy market analysis of trends, risks and more