Due Diligence

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.

Acquisition of Crude Oil Gathering System

Conducted technical and economic due diligence on behalf of an operating company in conjunction with the proposed acquisition of a crude oil gathering system.

Midstream Due Diligence

Assisted energy distribution company with due diligence for potential transaction involving gas gathering and processing assets in 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 comprehensive economic model of the integrated gathering and processing assets that was used to determine valuations and evaluate key sensitivities.

Due Diligence For Petroleum Products Pipeline Investment

Evaluated the projected shipping volumes, revenues, tariffs, expenses, product mix, and market response of customers and competitors for a new high capacity refined products pipeline serving the southwest U.S.  Due diligence and economic modeling was performed for prospective equity investors in the pipeline.

Assess New Technology For Purifying Natural Gas Well Water Production

Reviewed equipment design, specifications, and test results for new skid mounted evaporative production water purification system.

Petroleum Terminal Due Diligence and Market Value

Performed due diligence of petroleum and chemical storage terminal including tanks, docks, rail and trucking loading facilities.  Inspected site, conducted interviews and reviewed records.  Developed market value report.

Midstream Due Diligence

Conducted due diligence on gas gathering and processing assets located in Southeast New Mexico and West Texas on behalf of lending group and prospective purchaser.  Activities included physical inspection of facilities, review of operation and maintenance records, assessment of gas supply and competitive position, and review of economic assumptions and projections to ensure consistency with current gas supply contracts and asset performance.

Crude Oil Pipeline Evaluation

Commercial finance firm required investigation on behalf of a refinery whether to purchase an existing idle crude pipeline in need of rehabilitation or to build a new crude pipeline to supply refinery.  Recommended the construction of a new pipeline which subsequently occurred.

Gas Plant Due Diligence

Conducted due diligence on two sour gas processing and treating facilities in Alabama on behalf of potential acquirer.  Activities included facility inspection, review of operation & maintenance records, staffing levels, integration opportunities, and forecasted capital expenditures.

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.