Thu, Jul 6, 2023

Global Oil and Gas M&A Outlook - Q1 2023

In this edition of our Global Oil and Gas M&A Outlook, we examine and evaluate current trends for commodities prices, leading sector indicators, valuation developments, M&A deals conducted during the quarter and developments on featured specialty subsectors.

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Global Oil and Gas M&A Outlook – Q1 2023

How Can Kroll Help

Kroll has a dedicated industry team with more than 100 full-time professionals, combining two essential key success factors in oil and gas transactions: (i) deep operational knowledge and market and legal understanding of the industry and (ii) corporate finance and accounting expertise.

We work with oil and gas organizations to rationalize portfolios, raise private debt and capital, find cost reduction opportunities and successfully navigate regulatory and tax law changes.

Our team has advised most major international oil companies on a variety of transactions and strategic issues, ranging from M&A mandates to full due diligence, valuation advisory, corporate reorganizations and capital raising. Moreover, our team structure provides a flexible approach, and senior management is present throughout every phase of a transaction.

Buy-Side Advisory

From decision support at origination to deal closing and beyond, Kroll supports its clients throughout the deal cycle. Combining market data with fundamental financial competencies, we support critical decision-making with essential advice and information.

We provide our clients with the information they need to make informed business decisions for buy-side transaction projects. From strategy to execution, Kroll enables oil and gas companies to transact, grow and realize value with greater conviction and speed and the appropriate industry insights.

Private Debt and Capital

Kroll has long-standing relationships with the leading providers of private debt and equity capital and supports our clients in achieving an array of strategic objectives, including:

  • Capital structure, capital raising and capital alternatives (recapitalization)
  • Financial structuring
  • Strategic planning
  • Independent views on investment bank and equity research analyst selection, pricing, valuation and equity raising process appropriate to industry insights.

Sell-Side Advisory

Sellers may face tremendous pressure to drive maximum value by bringing to market assets that are operationally optimized and transaction-ready. Whether the seller is looking to spin off, carve out an asset, or sell an entire company or business unit, oil and gas companies should focus on selling assets in the same rigorous way they focus on acquisitions.

Kroll’s team can help companies optimize their portfolio and improve divestment strategy and execution through the following vendor assistance actions:

  • Assessing the strategy and portfolio management
  • Drafting equity story development and delivery
  • Executing complete due diligence as a one-stop-shop (financial, commercial, risk and compliance)
  • Supporting negotiations and closings

Oil and Gas-Specific Services

The nature of and investment amounts required for the oil and gas industry needs a thorough understanding of sector-specific drivers, such as macroeconomic and geopolitical impacts on market balances. Our Oil and Gas team has extensive and global hands-on experience in the sector, and we add value by providing a bridge between technical, commercial, legal and financial teams.

The team understands the idiosyncrasies of the global sector and leverages the knowledge to provide following services:

  • Project and structured commodity finance advisory and asset-based lending advisory
  • Joint venture audits, financial joint venture management and preparation of cost certificates
  • Valuation of exploration and production assets, commercial contracts, etc.
  • Development or tariff/rate models for midstream and downstream assets

We hope you find this report helpful in understanding the current trends in the Global Oil and Gas sector. If you would like to receive further information or discuss any of the findings, please contact us.

Valuation Services

When companies require an objective and independent assessment of value, they look to Kroll.

Corporate Finance and Restructuring

M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.

Mergers and Acquisitions (M&A) Advisory

Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.

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