We work with clients to establish company strategies based upon their competitive advantages and market projections or petroleum province assessments. Our proprietary Rystad Energy UCube includes information on distribution of global oil and gas resources by region, country, and province acreage – and who owns these resources. On such basis, we assist clients to identify opportunity sets that can be used as building blocks in their strategies – whether the clients are focusing on growth in equity resources or growth in oil service revenue from projected investment programs.
We assist our clients in identifying new business development opportunities in a structured, comprehensive and creative manner based on specific strategic preferences. We prepare for interactive client workshops with our global datasets, to efficiently review company portfolios and jointly develop rich long lists. We conduct additional research, valuation work (for comparison against market values), and feasibility assessment to define a short list of opportunities for clients to pursue. We have conducted business development screening in all key regions of the world and for most oil service segments - continuously building relationships at various levels in the E&P industry.
We have, specifically for Norway, developed our NCS Business Development Atlas as a stand-alone product that clients use in internal workshops and as a source of reference to pro-actively identify new opportunities to target.
We deliver bottom-up, field-by-field company valuations for more than 1000 E&P companies using our Rystad Energy UCube and Enterprise Value databases. These valuations are compared against market values to identify undervalued or overvalued companies used by buy-side analysts in their investment decisions. We also monitor smaller peer groups of 5-20 E&P companies to identify key value triggers (new wells, projects) and provide relative valuation metrics for ready comparison, for instance Implied Oil Price or Implied Reserves Value.
We leverage our existing data set and analytical tools to establish initial outside-in valuations of individual oil and gas fields or portfolios and thereafter supplement this with client data from data rooms where available. We apply our petroleum engineering experience in assessing third party information and interpretations in addition to our assessment of commodity prices and discount rates, to prepare sound and robust valuations for our clients. We use our own proprietary bottom-up dynamic valuation models with built-in tax models for key petroleum regions.
We compare valuations with precedent transactions from the global E&P Transaction Database developed by our research partner Derrick Petroleum in India. We combine precedent transaction analyses with our understanding of potential buyers’ strategic priorities and preferences to advise clients on the likely market value – either in outright bids or exclusive negotiations.
We support investors and owners in identifying new owners or strategic investors. Our key contributions are to identify and contact potential buyers, develop investor presentations and business plans, prepare for and participate in negotiations, and follow through with project management and support to maintain momentum and drive for closure.
We work seamlessly in joint transaction teams with financial and legal advisors and company management.
We assist private equity or public debt investors in reviewing E&P and oilfield services investment cases and conducting strategic/market due diligence. We review and test business plans, develop our own, independent market projections, and assess the management team through interviews and reference checks.
We collaborate with clients to assess the market potential (size and growth rate) for new or existing oilfield products and services, leverage our bottom-up, field-by-field databases to assess overall market and key segments (geography, customers), and assess customer preferences and value drivers through interviews.
We participate in business development with clients, preparing for and participating in customer meetings and negotiations, providing energy and project management support to help clients advance. Our key value proposition is to combine our global field database and oilfield supplier company database, analytical skills and capacity, and oil industry experience and network. We have covered a broad range of oilfield products and services, including transportation, subsea equipment, processing and measurement equipment, production facility modifications, offshore drilling rigs, and chemicals for EOR projects.
We help clients to compare their operational and financial performance against their defined peer group. For this, we leverage our own database of 10K (SEC) company-reported data on exploration acreage position, reserves movements (organic and inorganic), production, cost and expenditures (including exploration), and oil and gas prices realized.
We benchmark E&P companies’ business development track record in terms of acquisition spend and associated future capex obligations, reserves additions, prices paid, regional or strategic focus, swaps, and divestiture patterns. We identify main sources of growth, inorganic vs. organic, and likely next steps.
We supplement this with our proprietary data set to benchmark future production growth and value creation (based on future Net Asset Values) for peer groups of companies.
We compare the capital market performance (share price) and perception (analyst expectations) with the underlying historic performance and our projected growth forecasts. We use this to help clients understand sources of value gaps relative to their peers and assess implications for clients’ strategy and portfolio.
We analyze historic demand/supply patterns in regional gas markets. We make gas supply projections utilizing gasfield production forecasts from our proprietary global upstream database UCube combined with our gas network models. These forecasts are then compared with various authoritative demand projections from agencies like IEA, EIA and, Eurogas and may be utilized by our clients to estimate gas price developments in the regional gas markets.
We make detailed models for the throughput in the Norwegian gas evacuation network Gassled. The Norwegian oil and gas fields, discoveries, and yet-to-find resources are tagged to individual pipelines in Norway in a comprehensive calculation model built by Rystad Energy. The model enables estimation of tariff income for all tariff areas of the Gassled system. Furthermore, the output can be used to assess the need for additional export capacity from various petroleum provinces – and can ultimately influence clients’ willingness to explore for gas in certain areas where export capacity may be fully booked for years ahead.
We advise our clients on short and long-term outlook for oil and gas supply using our proprietary database UCube at global or regional level.
We review large scale projects in terms of start-up date and capacity, applying our independent judgment and fact-based analysis on shifting project start-up dates due to operators’ qualities, country specific conditions, or availability of critical equipment and services.
We deliver cost of supply curves at field or segment level (e.g. deepwater, oil sands, onshore vs. offshore) to understand the marginal cost of supply and impact of cost escalations and cost cycling due to changes in demand for oilfield services and equipment.
We present both aggregate results and field-by-field data in interactive client workshops that facilitate greater ownership and understanding of the key drivers for growth and for clients to form their own view on future supply.
We combine our supply projections with short and long term demand projections from public sources, e.g. EIA and IEA. We use these to help clients understand key drivers and outlook for oil and gas prices.
We assist our clients in understanding risks and opportunities of energy markets in transition. This involves fact based perspectives on current situation and trends, supporting corporate strategy processes, and advisory on how to effectively execute on targets and disclose results.
We track and estimate carbon emissions along the value chain for all oil and gas projects globally, both historically and forward looking. This allows us to assist our clients in assessment of carbon emissions across assets over time in a consistent and transparent manner.
We help our clients understanding their exposure to the risk associated with adoption to a low-carbon-future. We quantify value at risk in E&P portfolios field by field, based on production, economics and emissions.
We contribute with creation of new business models for the Carbon Capture & Storage Value Chain by learning from how other global industries - facing similar challenges as the CCS segment - have resolved the interface between sellers and buyers. Such work includes preparing several models on how governments and authorities can contribute to closing initial value chain gaps in early phases of the CCS business.
We assist our clients in understanding the global offshore wind market including mapping and projections of offshore wind projects and associated activities for the suppliers.
We support our clients in understanding the dynamics of the power market and the role of renewables relative to fossil sources.