Exploration & Production
The United States is producing more oil and gas than ever before due largely to tapping into the country’s tremendous shale oil and gas reserves. Greater offshore exploration in the outer continental shelf also is expected. These trends represent enormous opportunities — including widespread impact of lower energy costs and the export potential of liquefied natural gas and crude oil — and challenges — including regulatory and policy issues and renewed competition between natural gas and oil. FTI Consulting Energy professionals, who are former senior energy executives, noted academics and former regulatory officials, have unparalleled experience at the forefront of energy policy and industry operations. We have the economic, financial and regulatory expertise to help clients tackle challenges and take full advantage of opportunities throughout the energy supply chain.
Our Service Offerings
The dramatic growth of shale oil and gas production and the attendant upswing in energy prices have created many legal challenges for domestic producers. Disputes often arise over lease agreements, sales contracts, commodity prices, valuation of oil and gas assets, regulatory enforcement actions, etc. Because many of our Energy professionals joined FTI Consulting from the oil and gas industry, as well as a number of regulatory agencies, we understand how to deal with the issues involved. Internationally, the development of foreign oil and gas continues to thrive in an environment of high risks and great rewards. FTI Consulting professionals are located in key producing countries around the world. Both internationally and domestically, we have participated in many capacities, including providing privileged consulting and expert witness testimony.
Investigations can be either proactive or reactive. Some companies take proactive, preventative measures and use investigations to support programs designed to offset vulnerabilities; e.g., cross-border agreements and compliance issues regarding anti-corruption. Others use investigations to react to alleged non-compliance lawsuits. Most issues concerning exploration and production (“E&P”) involve tremendous amounts of data that need to be analyzed. FTI Consulting has the industry knowledge base and computing power to analyze large data sets to assist clients in any investigation.
Oil and gas producers are facing an increase in regulatory and policymaking activity focused on shale oil and gas exploration. To stay competitive, oil and gas producers must play an active role in the development of legislation and regulatory policies. Before joining the firm, the energy specialists at FTI Consulting worked on Energy committees of both the U.S. Senate and House of Representatives, as well as in policymaking positions in the Environmental Protection Agency and the Department of the Interior. We combine that experience with our industry knowledge and analytical capabilities, including economics, modeling and valuation, to intelligently and persuasively engage in regulatory and public policy discussions that advance our clients’ interests.
With oil and gas exploration and production expanding beyond historic locations, both conflict and opportunity confront oil and gas producers. It is critical that key audiences — legislators, regulators and the public — get the correct information about important issues. FTI Consulting communications professionals are dedicated to helping E&P companies secure, protect and enhance their permission and/or license to operate through strategic communications and stakeholder involvement. We understand the policy, the politics and the communications challenges associated with the industry. We have extensive experience executing effective community relations and education plans, rapid response campaigns, crisis management, CEO positioning, and issue campaigns that educate and influence legislators, regulators and the public on behalf of our clients.
The success of shale oil and gas exploration and production has given rise to considerably more transaction activity. As E&P companies re-evaluate their portfolio of assets and reposition themselves to take advantage of new opportunities, organizations engage FTI Consulting to assist and advise on potential transactions, recognizing our Energy professionals’ deep experience in and understanding of the economic, financial, operational and regulatory challenges and opportunities that exist.
There are M&A challenges and opportunities both offshore and onshore. Because of FTI Consulting professionals’ experience and expertise, we support our clients’ M&A activities from the earliest part of the planning process through completion of the deal and beyond. For acquisitions, we provide critical financial and strategic due diligence, oversee communications with key stakeholders and advise on the regulatory review process. For carveouts, spin-offs and divestitures, we help the new entity prepare for and thrive in its restructured standalone environment. No longer dependent on a parent company or larger organization, we understand what the new entities will require, we understand the importance of transition services agreements and we know how to set up these new organizations to be successful.
E&P companies typically consider restructuring because their exploration program has not generated sufficient liquidity to continue to replace reserves. FTI Consulting has achieved extensive success working with E&P operations confronting financial challenges. Recognizing the significant capital available in the E&P space where a solid business plan exists to attract that capital, the challenge is understanding the reserve base, the opportunities for development and the costs involved. We have been involved in every major exploration and production restructuring in the past 15 years. Our deep analytical skills and understanding of E&P operations enable us to provide our clients with the best insight into maximizing the opportunities and minimizing the effect of challenges.
The success of a restructuring, merger, acquisition, carveout, spin-off or divestiture may depend on how quickly management voids can be filled once the transaction is completed. The seasoned Energy professionals with C-level experience at FTI Consulting are prepared to fill the void when client companies face leadership, financial or operational challenges. In a moment’s notice, our experienced and credentialed senior executives assume C-level roles, providing the leadership and strategic decision-making ability to maintain momentum, establish corporate priorities, build morale and provide critical continuity. Our C-level executives serve in the following roles: chief executive officer, chief operating officer, chief financial officer, chief restructuring officer, controller and treasurer.
E&P companies often need critical, hard-to-find historical evidence coupled with damages assessments to support efforts undertaken when confronted with environmental claims. FTI Consulting Energy professionals have the expertise and resources to deliver forensic historical and environmental cost analyses relating to claims made by others or claims initiated by our clients. These services include performing fact-based retrospective analysis, evaluating cost claims and determining appropriate cost share responsibility in order to defend claims made or to initiate cost recovery on behalf of our clients. This includes privileged analysis, as well as critical expert witness testimony.