Oil & Gas Upstream
Upstream oil and gas companies operate in an environment that is under financial, competitive and regulatory stress. Conflicting legal and regulatory frameworks, pervasive contractual disputes and high market volatility generate increasing challenges to operating management.
How We Help
FTI Consulting energy professionals bring oil and gas industry operating experience and litigation support expertise to companies and their counsel. We provide a unique combination of seasoned managerial and executive experience with insights gained from years of dispute management, damages analysis, public policy analysis and expert testimony.
FTI Consulting, particularly through its subsidiary, Compass Lexecon has provided expert advice and testimony...
FTI Consulting, particularly through its subsidiary, Compass Lexecon has provided expert advice and testimony in hundreds of complex antitrust actions and M&A transactions during the last 30 years. We apply cutting-edge industrial organisation theory and use sophisticated economic and econometric analyses to dissect and define the complex issues that are found in these engagements. We have evaluated proposed mergers and acquisitions on behalf of both government agencies and private entities. Using rigorous, state-of-the-art analytical methods applied to complex data, we evaluate the likely effects of proposed mergers and acquisitions on prices, costs and competition. Our professionals also regularly assist both defendants and plaintiffs in antitrust litigation, including cases involving price fixing, predatory pricing, bundling and various forms of allegedly exclusionary conduct. An integral part of our role in many of these cases involves the estimation of lost profits or damages from elevated prices and output restrictions. Clients seek our advice for:
- Anti-Competitive Agreements. Companies can distort fair competition by cooperating with competitors, for instance by fixing prices or dividing the market so that each company has a monopoly in part of the market. On behalf of our clients — energy companies, regulators, or even governments, our subsidiary, Compass Lexecon has professionals to investigate those companies suspected of collusive behaviour. Our credentials are without peer. Because we have top professionals in competition economics and energy economics, we can study the market characteristics and market outcomes to assess whether the market is prone to reaching and sustaining a cooperative agreement. We analyse whether cooperation is harmful to competition, we can assess the actual degree of harm, and we can analyse whether there are pro-competitive effects that could not be reached without the agreement.
- State Aid. European governments are not permitted to provide financial assistance to their national companies or, if they are, it is subject to very strict scrutiny and requirements in order to minimise their impact on competition in the single European market. Our subsidiary, Compass Lexecon has professionals to provide support in the economic analysis required by wholesale energy companies or governments seeking State Aid clearance from the European Commission. Our economists have significant experience in advising parties seeking State Aid clearances, for instance by testing whether financial support is consistent with the European Commission’s economic principles for State Aid measures, and in assessing the impact of proposed arrangements.
- Merger Approval. Approval for an upstream oil and gas merger in Europe comes from either the European Commission or a national authority. FTI Consulting is often involved in such mergers because we offer a unique combination of competition economics and energy industry expertise. Our weight of expertise is a key advantage given the tight timetable of merger proceedings.
Companies with oil and gas assets require in-depth understanding of energy market dynamics that affect their...
Companies with oil and gas assets require in-depth understanding of energy market dynamics that affect their holdings, including the regulatory environment and macroeconomic conditions. With our deep industry expertise, including former senior regulatory officials and valuation experts, FTI Consulting professionals understand the key drivers of the value of energy industry assets. We provide valuation opinions and expert testimony in traditional commercial disputes, including matters of economic damage, post-transaction disputes, professional negligence and stakeholder controversy. We also offer valuation opinions and expert testimony before international arbitration tribunals. We regularly bring our energy market expertise and expert witness pedigree to bear in multibillion dollar energy industry disputes. Clients seek our advice for:
- Natural Gas Price Disputes. The European natural gas market is still recovering from the aftermath of what many refer to as the “perfect storm” — the liberalisation of natural gas from capital monopolies to market-based pricing, the aftershocks of the 2008 financial crisis and the discovery and production of shale gas in the U.S. The result has been a significant reduction of demand for natural gas and a substantial increase in supply, creating highly price-competitive markets. Such an environment has given rise to many disputes between producers and midstream distributors. FTI Consulting energy professionals have deep expertise in the European natural gas sector and are well versed in international arbitration about the pricing of gas. We act as economic experts, providing analysis of how markets are changing and how the pricing of natural gas should change to reflect changes in those markets.
- Commercial Disputes. Many development contracts in the upstream oil and natural gas sectors are long-term, 10 to 15 years in duration. But because of a variety of reasons, many companies find themselves in positions where it is not commercially sustainable to function under the original contractual conditions. Breaches of these contracts are not uncommon. Clients rely on FTI Consulting and its deep energy expertise and extensive industry contacts for advice during every stage of a breach of contract matter, from early case assessment and discovery to case strategy, damages analysis and settlement services.
- Cost Verification. In the upstream oil and natural gas sectors, costs often come into question in new construction, renovations, expansions and acquisitions, as well as in properties already on company balance sheet and those that have been sold. FTI Consulting energy professionals review costs down to as much detail as records will permit. Ideally, our investigation will drill down to invoice level and comparing that invoice to actual payments and how those costs compare to contractual arrangements and terms.
FTI Consulting has deep expertise in enhancing company value.
FTI Consulting has deep expertise in enhancing company value. We have extensive experience across the deal lifecycle and with critical corporate situations that give us a clear perspective on where value exists and how it can be optimised. We consider deal structure, industry sector and such unique client requirements as filling management voids to customise the integration approach to deliver maximum value. Clients seek our advice for:
- Interim Management. The success of a restructuring, merger, acquisition, spinoff or divestiture may depend on how quickly management voids can be filled or missing management capabilities can be added for a certain period. The seasoned professionals with C-level experience at FTI Consulting are prepared to fill the void when oil and gas clients 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.
- Project Management. Companies often do not have the resources to properly manage the budget and timetable for the construction and/or installation of an upstream oil and gas facility or other critical programmes. FTI Consulting has those resources to assure that a client’s budget and timeline are met. Through our exclusive Project Management Office (“PMO”) approach, we identify the root costs of deviations, define measures to get back on track, and support the implementation of the measures to assure that final targets are achieved. This is based on our long-term experience in these situations and secures the results are achieved with minimised additional workload for key staff.
- Profit/Operational Improvement. Companies that have upstream oil or natural gas facilities that are up and running but not meeting expectations — i.e., disappointing cash flows, technical mishaps, etc. — call on the highly experienced professionals at FTI Consulting to analyse existing conditions and propose and implement financial and operating improvements. This process helps our clients maximise efficiencies at their facilities, and achieve improved profitability levels and operational standards. Based on our long-term project experience we identify the most relevant operational improvement levers and secure that they are successfully implemented.
- Cash & Working Capital Management. For oil and gas companies, it is critical to manage cash and working capital. The difficulty is that many companies do not have the resources or the experience to develop the required methods and processes. Because of our extensive experience with upstream oil and natural gas clients, FTI Consulting is often called upon to help. Our professionals include former natural gas and oil facility managers with strategic, operational and financial backgrounds to provide a realistic, fast and optimised plan to improve cash and working capital positions. We customise cash flow forecasting, modelling, monitoring processes and working capital management. Most any evaluation of working capital management involves inventory control. We secure that minimisation of inventories is done without jeopardising the client’s production process. Our experience guides us in developing and implementing capital optimisation strategies for our clients that are practical and operational.
- Merger Integration & Carve-out Planning. The success or failure of a merger usually depends on what is accomplished after the deal closes. Merger integration of cultures, processes, organisation, assets, personnel, IT, and business activities is a complex process that can take a few months to a few years. FTI Consulting professionals, in our Corporate Finance and Economic Consulting Practices, have wide experience — in the upstream oil and natural gas sectors and in most all industries across the globe — to provide the critical integration support necessary to sustain the merged business’s operational and financial performance. And where an upstream oil or natural gas company needs to acquire only a portion of another, FTI Consulting carve-out specialists can prepare a deal that will deliver the right people, the right assets and the right infrastructure to the acquiring company and then follow up with the integration of the carve-out assets.
- 100-Day Plans. In transformation phases, e.g. when a new CEO, COO or CFO joins a company, there are many issues that need to be addressed and prioritised urgently, reviewed quickly, or tabled until later. Because of the vast upstream oil and natural gas experience of FTI Consulting professionals, we are often called upon by new management of a natural gas company or oil facility to create a plan for the first 100 days. This is very detailed and structured and prioritises specific tasks accompanied an actionable plan for each. The plan incorporates past efforts with current needs that support attainable goals. Included are responsibilities of others involved and a timeline. The result is a fast, controllable and efficient ramp up or change process for new management.
Upstream oil and gas companies often have to develop strategies to shape and inform the political and policy...
Upstream oil and gas companies often have to develop strategies to shape and inform the political and policy environment, as well as engage key legislative, regulatory and executive decision makers on matters that include tax, trade, labour and regulatory oversight. FTI Consulting works to protect clients’ political and policy interests, providing up-to-the-minute intelligence and assessments of policy and political risk, as well as developing and implementing issue campaigns and legislative and regulatory mitigation strategies. Clients seek our advice for:
- Permitting and Licensing. FTI Consulting works with upstream oil and gas companies and with their trade associations to seek to affect government policy regarding issuing permits and licensing. Also we campaign on issues like state aid where a client’s competitor receives aid from another member state that in our client’s state is unlawful. By eliminating unfair competitive advantages, we help level the playing field for our clients.
- Public Opinion and Perception. FTI Consulting does grassroots campaigning on behalf of our upstream oil and gas clients. To manage the acceptance of drilling new wells or building new pipelines, for example, we speak to local communities in an attempt to affect and improve our clients’ public opinion standing and overcome resistance. To make client messaging as clear and acceptable as possible in local communities, we conduct opinion and perception audits and state called audits. We also regularly engage with local, regional and national decision makers to secure the best environment for our clients.
FTI Consulting energy specialists help oil and gas clients navigate the complex and continually changing regulatory...
FTI Consulting energy specialists help oil and gas clients navigate the complex and continually changing regulatory and legislative landscape. Our team has highly experienced economists, industry specialists, ex-regulators and accountants to serve the regulatory and strategic needs of its clients. On the government relations side, we work with clients to develop regulatory strategies that are consistent with the client’s long-term goals and help to both shape and adapt to the evolving policy and regulatory landscape. Separately, our economics team provides robust independent analysis of regulatory issues that informs both strategizing and dialogue with policy-makers. Clients seek our advice for:
- Access to Offshore Infrastructure. Companies with existing offshore wells and pipelines to shore are often called upon by other offshore producers to share those pipelines in lieu of building new ones. Pricing in most countries is regulated. The British Government, for example, in an effort to make offshore oil and gas exploration as inexpensive as possible, requires companies that own and operate existing pipelines to be reasonable in pricing access to their infrastructure. In the North Sea, there are many complex pipeline networks. FTI Consulting energy professionals have been involved in disputes around what kind of access should be given and at what price.
- Royalty & Royalty Disputes. FTI Consulting is very strong in data collection and analysis of royalty payments associated with upstream oil and gas leases. Drawing upon our international expertise analysing the royalty commitments with foreign government leases, we help manage client royalty costs. We are experienced at all stages of development of a royalty agreement — we draft the agreements, we provide counsel where clients are in the process, and propose changes that improve the value of the agreement. This is possible because of our thorough analysis of the current regulations and legal precedents for royalty agreements throughout the EU.
The upstream oil and gas industry team within the FTI Consulting Strategic Communications Practice includes...
The upstream oil and gas industry team within the FTI Consulting Strategic Communications Practice includes sector experts with experience representing a broad range of organisations and companies, from start-ups to multinationals. Our clients benefit from the team’s relationships with key influencers to seize opportunities, manage crises, navigate market disruptions, articulate brands, stake a competitive position, and preserve a client’s permission to operate. We have the breadth and depth of experience to help clients clarify, persuade and ensure that the right message reaches the right audience at the right time. Clients seek our advice for:
- Corporate Communications. Historically, the energy industry in general and its participants have not communicated their stories very well. External communications have been non-existent or guarded at best. As a result, corporate reputations and public trust in the industry are low. Companies need to tell their story, not just after a crisis, but also on an ongoing basis to communicate what they are about, what they are doing (and why) and why they are competent and can be trusted. Corporate communications is basically doing the everyday heartbeat outreach to build, sustain and defend an organisation’s reputation. FTI Consulting Strategic Communications professionals are highly experienced and well equipped to help individual companies and entire industry sectors defend their licence to operate by highlighting innovation, sustainability, corporate responsibility and the enormous economic contribution they make to society as employers and providers of essential services.
- Financial Communications. Financial communications tend to be either defensive or offensive. On the defensive side, for example, companies may be experiencing a declining share price or a rising bond price. FTI Consulting Strategic Communications professionals are highly experienced reaching and communicating with those people who influence financial performance — stakeholders, institutions, mutual and hedge funds and security analysts. It is critical that these audiences receive and understand a company’s key messages about corporate strengths, management strengths, corporate strategies and steps being taken to improve corporate performance. On the offensive side, financial communications should be ongoing, reinforcing the same company key messages — corporate strengths, management strengths, corporate strategies and steps being taken to improve corporate performance — usually in support of an IPO, acquisition, or to simply sustain existing share price performance.
- Issues & Crisis Management. There are basically two types of crisis situations — the crisis of reputation where important audiences are losing faith in a company, its performance, and its leadership; or a high impact/low probability crisis such as an explosion at a production facility or the death of a senior executive. To help clients prepare for such eventualities, FTI Consulting professionals take a campaign-like approach to these challenges, closely coordinating with management teams, as well as legal, financial and other advisers to provide strategic counsel on all aspects of internal and external communications. We help identify, prioritise and track issues — economic, financial, political, industrial, or technical — that can impact on the client’s performance, its reputation and its value. We then advise on how to address them proactively to achieve a positive outcome.
- Stakeholder Communications. Companies must consider each stakeholder group separately to engage in a proper dialogue with them. It is critical that all stakeholders be identified. FTI Consulting Strategic Communications specialists research all possible stakeholder groups, not just establishing who they are and how important they are to the company, but also what they want and need to know and what information the client can give them. This includes examining how our client has been communicating to them in the past and what it should be saying today and in the future. In addition, and just as importantly, clients need to listen to their stakeholders so that relevant messages can be crafted and addressed to each specific audience. FTI Consulting analyses and prioritises stakeholders and messages and develops programmes for clients that help facilitate audience-specific messaging to create a proper dialogue with those people who have the greatest financial influence on the client’s business.
- Public Affairs & Policy. Legislation and regulation have an enormous impact on the upstream oil and natural gas industry. Political stakeholders, elected representatives at local and national levels, civil servants, people who work on the executive arm of the government, advisers, policy think tanks, commentators, and academics all play an important part in the public debate on natural gas and oil issues. It is critical that an upstream oil or natural gas company’s communications help it be better known among these groups, help it be listened to more, and help its interests be better understood when decisions are being made that affect its business. FTI Consulting works with individual companies and their trade associations to seek to affect government policy regarding permitting and licensing issues for upstream oil and natural gas facilities, as well as issues affecting existing installations such as state aid, patent discounts, etc. We also conduct grassroots campaigning in local communities to overcome resistance to a client’s new installation.
- Planning & Public Consultation. Starting an upstream oil or gas project in the UK and throughout Europe is a very complex undertaking. It ranges from developing construction plans and applying for permits to satisfying all the requirements of government/regulatory agencies during construction and meeting the needs of the public who may not want your project in their backyards. FTI Consulting energy professionals are expert at guiding companies through this process, from the actual application and construction through to public consultations, holding meetings with local communities, talking to local elected representatives, etc. Communications are key. It is important that all audiences know and understand that you are a responsible company in a responsible industry, providing employment and an essential energy service.
- Research. In-depth market and stakeholder analysis can help upstream oil and gas companies solve complex business and communications problems. The FTI Consulting Strategic Communications team consists of professionals who have served in major strategy firms, research consultancies, political campaigns, financial institutions and academic bodies. Working closely with energy sector experts within FTI Consulting, our team rigorously researches stakeholder perceptions, client brands and competitive operations, as well as the financial markets. In addition, our international network enables us to conduct research in all relevant countries.
- Government Relations. Legislative and regulatory pressures are becoming more prevalent in the upstream oil and gas sectors, which increase a company’s compliance obligations and can jeopardise its licence to operate. Managing political risk is a growing imperative for effective corporate governance and business planning. FTI Consulting combines public policy, capital markets and sector-specific expertise to offer a unique capability for upstream oil and natural gas clients operating at the critical intersection between business and government. Our involvement can extend from specific upstream oil or natural gas issues to ongoing government campaigning in support of client positions on tax, environmental or public policy issues.
- Competition Investigations. From time to time, participants in upstream oil and gas markets may find themselves involved in some way in competition investigations relating to alleged antitrust violations, regulatory scrutiny of an M&A transaction, claims of state aid, or sector inquiries. Communicating effectively to the press, to relevant regulatory and legislative stakeholders, and to a firm’s investors and employees is a key component of protecting the firm’s reputation, allowing the business to function normally while the investigation is ongoing, and securing a rationale outcome. In these situations, FTI Consulting Strategic Communications professionals specialise in helping clients to interact constructively with political and regulatory audiences in articulating the larger business and political contexts in which the company operates, and the ways in which the public benefits as a result.
- Rebranding & New Message Development. Rebranding can be a defensive or offensive strategy for upstream oil and gas companies. The company may need to distance itself from a negative perception that exists in the minds of consumers, investors, competitors, and other stakeholders. On the other hand, the company may want to communicate a new corporate strategy and messaging that the old brand cannot support. In either case, rebranding usually involves radical changes. FTI Consulting Strategic Communications specialists work with our clients to develop a consistent message framework for addressing key issues that affect the new brand. At the same time, we take a structured, research-based approach to identify, map and prioritise stakeholders to help create tailored messages that will strengthen stakeholder support. Then we go to work developing the new brand's logo, name, legal names, image, marketing strategy and advertising and public relations themes.
The most promising markets carry strategic risks for upstream oil and gas companies and their executives.
The most promising markets carry strategic risks for upstream oil and gas companies and their executives. FTI Consulting specialises in expeditionary efforts into markets that are often opaque, complex and politically challenging. We provide intelligence and expertise that can shape an effective and compliant strategy to enter the most challenging markets successfully. Clients seek our advice for:
- Monitor and Review of Legislative & Regulatory Changes. When local business norms are built on opaque relationships and when the line between politics and commerce is blurred at best, bad decisions can destroy an investment in a market or bring the potential for regulatory action. The FTI Consulting energy team is built on in-country experience and expertise supported by well-tried networks of outside sources at all levels. Our intelligence-led research helps clients navigate uncharted new market legislative and regulatory waters.
- FCPA Vulnerability Advisory. There are many strategies for preparing to enter a new market. “Getting one’s foot in the door” often requires the assistance of a politically connected intermediary. The deep in-country legislative and regulatory experience of FTI Consulting energy professionals enables us to advise clients on whether such assistance is in violation of the Federal Corrupt Practices Act or other legislation. We often propose alternative courses of action that will avoid violations and fines. From forensic accounting to complex data and IT system analysis, FTI Consulting is a leading global provider of internal investigative work to companies concerned with fraud, corruption or improper vendor relationships.
- Political Risk Advisory. Often upstream oil and gas companies are faced with developing strategies to shape and inform the political and policy environment, as well as with engaging key legislative, regulatory and executive decision makers on matters that include tax, trade, labour and regulatory oversight. The FTI Consulting energy team works to protect clients’ political and policy interests, providing baseline research, regular monitoring reports and tailored intelligence on specific critical issues. Our analysis is built on extensive in-county sources and specialised regional teams composed of former diplomats, journalists, military officers, political experts and qualified lawyers.
- Strategic Risk Analysis. Promising new markets carry strategic risks for upstream oil and gas companies and their executives. When local business norms are built on opaque relationships and when the line between politics and commerce is blurred at best, bad decisions can destroy an attempted new market entry or bring the potential for regulatory action. The FTI Consulting energy team is expert at new market strategic risk analysis. Built on in-country experience and expertise supported by well-tried networks of outside sources at all levels, our intelligence-led research helps clients navigate uncharted new market legislative and regulatory waters. This includes mapping and analysis of networks, stakeholders and relationships at play, potential effects of changes in government or regulatory regimes, political risks and vulnerabilities, and targeted enquiries around specific issues or decisions, etc.
Even though there are taxation principles widely recognised and applied on an international and global basis,...
Even though there are taxation principles widely recognised and applied on an international and global basis, much of tax law is specific to local jurisdictions. It is important that companies have access to local tax advice and this is particularly so with the myriad of energy sector specific measures. FTI Consulting has a team of international tax professionals and a network of local tax law specialists. Clients seek our advice for:
- Transaction Tax. Upstream oil and gas companies involved in mergers, acquisitions, divestitures, or restructuring face a myriad of costs, including taxes related to the transaction. Transaction taxes can be direct — corporate and energy sector taxes — and indirect — VAT and stamp taxes. FTI Consulting professionals, ideally armed with vendor due diligence and buy-side due diligence, develop strategic solutions to tax issues that present possible risks or opportunities in the transaction. Our goal is to help our clients understand and optimise their position. Supporting this goal is the recognition that many upstream oil and gas companies operate in more than one jurisdiction. In these cases, we work with local tax advisors as part of a global network known as WTS that covers more than 100 jurisdictions.
- International Tax. When dealing with international tax matters, it is vital to combine local law with the international tax framework (particularly around ownership and financing issues) and the nuances within the energy sector. FTI Consulting has a team of seasoned international tax professionals and through its global network it has access to local tax law specialists in over 100 jurisdictions. These teams work together to successfully deliver realistic and pragmatic advice across energy sector projects.
- Corporate Tax Compliance/Reporting. It is important that upstream oil and gas companies have access to local tax advice that can support them in managing their tax obligations. FTI Consulting, along with its international network of local tax law specialists, is able to essentially act as an outsourced tax department to assist clients with their corporate and indirect tax compliance and reporting.
- Real Estate Tax Advisory. Upstream oil and gas companies must navigate the evolving complexities of real estate tax laws and regulations. In all cases, a company’s real estate assets have tax implications. FTI Consulting tax professionals specialise in real estate tax structures and compliance strategies, identifying opportunities and creating solutions for upstream oil and gas clients.
- Research & Development Tax Solutions. The upstream oil and gas sector has benefited from various R&D and intellectual property incentives in different parts of the world. In addition to tax credits for R&D, there are opportunities like Patent Box regimes in a number of jurisdictions designed to encourage R&D and innovation. But this landscape is complex and difficult to navigate, with government subsidies changing and sometimes drying up altogether. FTI Consulting has accounting and tax professionals who are well versed in the changing R&D tax environment. We advise our clients on current tax conditions and the planned future changes, giving them the insight to make intelligent R&D decisions and investments.
- Transfer Pricing & Tax Valuations. Transactions should take place at an arm’s length price because, otherwise, the parties, acting together, are in a position to use pricing to manipulate where profits are realised. The natural inclination is to realise profits in lower tax jurisdictions. FTI Consulting has a team of economists and tax specialists that have extensive experience in all aspects of transfer pricing and tax valuations, from tax authority audits to comprehensive transfer pricing studies supporting complex transactions and Advance Pricing Agreements.
- Tax Policy & Strategic Communication to Stakeholders. Tax policy and tax strategy have become much more of a boardroom and a stakeholder issue in recent years. Approaches to tax management that were accepted as commonplace in years past are now being seen through a different lens and having a material impact upon a client’s business. With more people scrutinising tax strategy and tax policy, both within and outside the company, FTI Consulting tax and strategic communications professionals now work closely together. Our collaboration supports boardroom understanding and generates targeted communications efforts that ensure that stakeholders (including tax policymakers) know and understand our client’s position.
Regardless of where an upstream oil or gas company may be in the deal cycle — from pre-announcement...
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. Clients seek our advice for:
- 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. 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.