Transaction Advisory & Restructuring
Regardless of where an upstream oil or gas company may be in the deal cycle — from pre-announcement planning to post-merger integration — FTI Consulting professionals, whether representing buyers, sellers or lenders, offers comprehensive due diligence advice and hands-on support in evaluating opportunities across the risk/return spectrum. As part of a global consulting firm known for success in high-profile, high-stakes transactions, we help our clients maximise value and minimise risk.
Our Service Offerings
Restructuring and Refinancing Lead Advisory
Whether a client’s transaction is a restructuring or refinancing of its existing debt obligations, it requires someone at the centre of the deal, to make it happen. FTI Consulting professionals have functioned as lead adviser in countless energy restructuring and refinancing transactions. We start at the very beginning in terms of articulating the transaction rationale and developing the process and timetable, and then leading that process through all phases. Typically, the process has two core stages — a financial due diligence stage, in which identifying and sharing all relevant financial information is identified; and a lead advisory stage, in which we coordinate the client’s efforts to liaise with the shareholders, financing parties (existing and incoming), their lawyers, and their stakeholders. Our goals as lead adviser are ensuring that the process runs smoothly, that the process unfolds on the established timetable, and to extract maximum value for our client.
Vendor assistance is essentially M&A support for the seller in the sale of a project or asset. FTI Consulting professionals are well versed in providing vendor assistance services to clients, including helping vendors with presenting consistent and comparable financial information, highlighting key trading trends, assisting with quality of earnings analysis, and challenging forecast assumptions to ensure robustness, before providing such information to potential buyers.
Financial Due Diligence
Upstream oil and gas companies face transaction opportunities and challenges across the entire risk/return spectrum. Most are inexperienced and ill equipped to understand or manage the demands of these opportunities or transactions. FTI Consulting professionals are well-placed to lead our clients — buyers, sellers and lenders — through an entire transaction life cycle, offering comprehensive financial due diligence advice and hands-on support, including — quality of earnings analysis, underlying working capital and net debt profile, forecast sensitivity analysis, and SPA advice to name a few. The result is that our clients complete transactions that are sound and sustainable.
Contingency Planning & Insolvency
The ultimate goal of contingency planning for a company in financial distress is value preservation. A well-conceived plan will help a company minimise adverse impacts on a its business; act quickly to attempt to avoid creditors or other events de-railing a turnaround plan; and help company management and directors identify viable plans to avoid insolvency (a credible “Plan B” may be necessary in order to persuade stakeholders to support a “Plan A”). FTI Consulting has a large Restructuring Insolvency Practice and has the resources to provide upstream oil or gas companies in any kind of financial distress with a comprehensive contingency plan for recovery. We have leading experience and expertise in specific oil and gas related issues including regulatory, health, safety and licencing issues, spanning the North Sea and other jurisdictions.
Crisis stabilisation tends to come into play shortly after a company begins to have liquidity and cash flow problems. Many companies have not experienced this problem and those that have probably didn’t handle it very well. FTI Consulting has professionals who know how to create a stable environment — by starting to manage cash flow and working capital, and negotiating waivers and standstills to avoid creditors seeking to act unilaterally to recover assets. If the crisis is more dire — facility closings, employee layoffs, etc. — our crisis stabilisation professionals help clients prepare to communicate with employees, local and regional and national politicians and regulators, the public and the media about what the company is doing, why it is doing it and what effect it will have on restoring the company’s health and stability.