The collapse of crude oil prices and the continuing softness of natural gas prices in North America have created more complex challenges and uncertainties for upstream, midstream and oilfield services companies.
E&P, oilfield services, and midstream companies and their creditors and investors are living in a world of uncertainty because there is no consensus view as to whether oil prices have reached bottom, when prices will begin to recover or how quickly a recovery will occur.
The rapid decline in cash flows of E&P companies is resulting in significant reductions in their capital spending which is adversely impacting all oilfield services and equipment companies and many midstream companies. Services and equipment companies are under greater pressure from their customers to reduce rates and prices. Services and equipment companies that expanded to support rapid growth in recent years are now faced with excess capacity and business models that need immediate reevaluation.
Companies in all sectors are increasingly focused on cost optimization and liquidity management. E&P and oilfield services companies that are highly leveraged and have limited liquidity and near-term debt maturities are in distress and need restructuring help now. Companies with strong balance sheets, good liquidity, access to capital and well-prepared management teams are focusing on acquisition opportunities. Due to the volatile price environment, many companies that want to sell assets are holding off because they don’t want to sell at the bottom….unless they are desperate or are forced to sell.
A&M’s energy team works with companies in all sectors of the energy industry to help them improve their performance, solve their most complex problems and deal with many of the challenges they face in today’s uncertain environment. A&M’s energy industry team consists of more than 200 professionals with energy industry experience and knowledge. Many of our people have industry operations or finance experience which brings additional value to client engagements through a greater bias for action and more successful implementation of practical solutions.
A&M’s energy industry capabilities and experience cover a broad range of projects and functional areas. A&M has conducted engagements in all sectors of the industry for companies ranging in size from start-up businesses to globally integrated oil companies.
Services we provide:
- Performance Improvement
- Turnaround and Restructuring
- Transaction Advisory
- Forensics and Disputes Advisory
- Tax Advisory
- Interim Management