Value creation patterns in Oil & Gas
For an AIM-listed oil producer, we supported the development of the optimum investment/divestment strategy to increase shareholder value in the long-term, whilst meeting short-term targets and financial market expectations at the same time. We analyzed the value-creation strategies of around 50 small, medium and large oil and gas companies over a 10-20 year period, focusing on the role of acquisitions, disposals, and their timing in relation to the financing needs of the business and the general cycle within the equity markets. We developed a financial model that allowed for strategic options to be tested and for the effect on equity dilution and likely share price development to be captured. We worked with the client’s investor relations team to optimize and present the equity “investor story”.
Development of an organization structure for an energy component manufacturer
After an extended period of significant international and domestic growth the organization structure of an energy component manufacturer had to be redesigned to suit the new business dimension. Together with key decision makers of the client we evaluated various organizational principles as well as roles and responsibilities for headquarters and international subsidiaries. The implemented design allowed the client to continue its growth path with much leaner and shorter decision making processes and clearly defined centres of competence.
Strategic portfolio tool in Oil & Gas
For a major European oil and gas company, we created a flexible business planning and strategic portfolio optimization tool that allowed executives to rapidly explore the effect of key strategic and operational decisions on future business metrics. The tool allowed for a range of potential acquisition opportunities to be assessed in a single framework, and for the effects of strategic and operational decisions on the financing side of the business to be captured.
Capital allocation in Oil & Gas
For a major European oil and gas company, we improved the capital-allocation process by using risk modelling and associated statistical techniques to create budget authorization processes which reduced “resource hoarding”. We also laid out the associated changes required to organizational structures and processes for the techniques to be optimally implemented. This allowed for the level of new project activity (and the future growth rate of the business) to be increased by 10%.
Debt financing options in Oil & Gas
We supported the raising of debt finance for an oil and gas company, including modelling of scenarios, valuation, and optimal debt sculpting, and aligned the model with the associated legal documentation.
Maintenance of safety equipment in Oil & Gas
We advised an oil company in quantifying the risks, costs and trade-offs in performing regular scheduled maintenance versus unscheduled maintenance of safety equipment.