Best practices for investment bankers looking to win new E&P clients. Clients increasingly view M&A advisory as a commodity. Learn how to differentiate from other banks pitching your clients and add advisory value rather than just bringing their deal to market.
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For instance see the break-even, reserves, NPV, IRR, production, CapEx, and hundreds of other
user-defined metrics for each country of operation.
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Or evaluate their portfolio by resource type if the strategy you want to pitch requires a pivot
from gas to oil or toward unconventionals.
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Next, benchmark them against the company they wish to acquire. You could add the entire list
of potential acquisitions here to short list the favorites in consultation with the client.
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Now evaluate the consolidated portfolio. This acquisition has added 5 new countries of
operation, and billions in recoverable reserves in some of the key geographies.
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Next, generate a roll up valuation of all of Chevron’s assets as they exist today. Add and save a custom oil price deck if you desire or use our 280+ futures based local benchmarks. The tool is
aggregating the results of thousands of individual excel models. To replicate a strategy valuation like this by hand would be extremely time consuming. But this isn’t a blackbox, you can view
all the underlying models to get comfortable with the methodology/sources, and make any changes to assumptions you require so you have confidence in what you put in front of the client.
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25,000+ fully transparent models so you can interrogate the data, tweak assumptions, or input
different scenarios if needed.
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Detailed break out highlights all the tax consolidation opportunities, and gives the user the
ability to set different discount rates to account for differing levels of risk in each country.
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Now lets add Anadarko to the portfolio. Note the color coded geographic overlay showing how it has grown the footprint. We can also remove
individual assets or countries, add years of divestiture, or add additional acquisitions in the future to sketch out any number of multi-year
strategies.
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Now see the combined valuation for this strategy. Note how the mix of fiscal regime exposure and resources have shifted, it has also added $29bn in NPV. We could
easily prepare multiple strategies and benchmark them against each other to demonstrate to the client which is the best path forward.
