My last article The Art of Business Development has garnered a lot of attention in the oil and gas acquisition and divestiture community for the past two months. And it wasn’t because my views on business development are groundbreaking or new. It actually caught fire because of what Beachwood does, day in and day out: we develop relationships and close deals.
In 2016 there have been many challenges for companies looking at acquiring oil and gas assets. Extremely low prices in February followed by a rebound in the second quarter led to delayed deals, reevaluations and additional bankruptcies. Although the stability of the market is still in question, some companies are maintaining their focus and drive and continue to acquire. They are successful in a market that very few are closing in.
An amazing opportunity has presented itself. With oil maintaining its low price, many are forming new teams, new plans and new companies. Some of these groups have decades of experience and find themselves in an extremely favorable position. They know where the best assets are, and can effectively capitalize on that knowledge.
The article Bear Strategies: Acquisitions – Oilman Nov/Dec 2015 – was a comprehensive look at acquiring operated or non-operated assets during a downtrend. In this article, we are focusing on the opposite side; how to divest your oil and gas assets in the current market. In both instances, defining your core market prior to acquiring or divesting any assets, is essential.
It’s important to note that implementing the core strategies outlined in this article in your acquisition process is essential, whether the market is bearish or bullish. In addition, each company needs to define the tactical goals within its business to maximize the effectiveness of these strategies
The Big Data train is full and is pulling out of the station. If you hurry, the folks on the telephone tell you, you can make it! It will cost an arm and a leg to ride, charged monthly (don’t mind the conductor counting his cash). But where will this train take you? What kind of information is available to you while you are on this ride?