Due Diligence Services
Our consultants have completed due diligence on a large number of transactions over the years on behalf of operating companies and their debt or equity investors. We combine our technical and business education with our practical industry experience to provide our clients with professional, objective, and timely advice.
Whether the potential acquisition is a natural gas plant, pipeline, terminal, refinery, or other hydrocarbon facility – the approach is similar. It is necessary to:
1. Scrutinize the asset’s historical financial and operating performance
2. Examine the existing supply and off-take contracts in place
3. Evaluate the asset’s present physical condition
4. Review the asset’s performance relative to the competitors
5. Analyze both positive and negative acquisition consequences
6. Understand and model the market
7. Develop a financial performance model
8. Conclude a range of values for the asset.
Refining and Chemicals
Refinery Acquisition and Divestiture Due Diligence
Performed due diligence on behalf of potential sellers and buyers on refineries being offered for sale. Work included assistance with discovery, analysis of refinery yields, operating costs, investment plans and preparation of financial models to support the valuations of the refineries. Activities involved data room document reviews, determination of value using the discounted cash flow (DCF) approach, site reviews and management interviews.
Natural Gas and NGLs
Midstream Due Diligence
Assisted an energy distribution company with due diligence for a potential transaction involving gas gathering and processing assets in the Permian Basin including over 4,000 miles of gas and liquid pipelines, four gas processing plants, and multiple gas treating plants. Participated in data room reviews and management presentations with a focus on commercial, operational, and technical evaluations of midstream systems. Prepared a comprehensive economic model of the integrated gathering and processing assets that were used to determine valuations and evaluate key sensitivities.
Pipelines
Gas Gathering/Pipeline System
Participated in the acquisition, and was asset manager for interest in a $250 million offshore Gulf of Mexico gas gathering/transmission system. Conducted acquisition due diligence, engineering assessments, contract reviews, and economic evaluations. Engineering representative for large system expansion including construction of a 70-mile, 24-inch diameter offshore pipeline and several lateral extension projects.
Olefins Pipeline Study
Led study and negotiations to secure high-pressure gas and liquids pipeline capacity for a grassroots ethylene plant. Explored joint ventures, service conversions, owner construction, and third party alternatives. Involved in developing design parameters, routing, and common carrier tariff structure. Executed contract to construct three 12-inch lines along the Gulf Coast.