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Oil & Gas

Climate crisis and geopolitical forces are accelerating the hydrocarbon energy transition. But market headwinds are far from uncharted territory for O&G.

The industry has survived a variety of transitory economic cycles, emerging stronger after each bear period. Our last oil crisis saw a 70% price decline, but the post-crisis landscape comprised leaner E&Ps, a rationalized shale oilfield service space, and more disciplined midstream investors.  

  

But the staying power of the ongoing transition is different. O&G faces a multi-decade phase of displacement with demand increasingly served by alternatives. The industry is under increasing pressure from regulators and investors leading to noteworthy trends: 
 

  • O&G companies are setting ambitious decarbonization goals, investing in ESG initiatives and alternative molecular fuels 

  • Digitization and IIoT efforts are transforming the value chain 

  • Downstream and midstream operators are variablizing spend profiles to improve cash flows. 

  • Operators are increasingly confronted by the risk of stranded assets.  

  • E&Ps struggling to generate returns via unconventional resource models are turning to consolidation to de-risk their balance sheets. 

  

But energy consumption continues to grow, and hydrocarbons remain the best suited solution to support demand for decades.  Exploiting these opportunities is far from easy and will require differentiated capital allocation strategies. The line between thriving and barely surviving will be narrow, with the quality of executive decisions making the difference.  

How Pointe can help

Pointe brings 20 years of experience guiding and informing capital allocation decisions across the complete hydrocarbon value chain. Given the long-term consequence of each strategic decision, executives require higher quality data and confidence in their market intelligence. Our evidence-based methodology combines original research and advanced analytic techniques to deliver the type of informed insights that enable you to move forward with conviction. 

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Pointe’s solutions include:

  • Mergers & Acquisition: We help validate and empower intended inorganic strategy by identifying acquisition candidates, diligencing specific targets, and executing on consolidation mandates. 
     

  • Growth Strategy: We create value by identifying available white space and assessing attractiveness and feasibility of associated opportunities. These range from immediate adjacencies to more transformative plays (e.g., transition investments). 
     

  • Market Analysis: We bring clarity to strategic processes by mapping market landscapes, sizing addressable segments, tracking critical trends, benchmarking competitor capabilities, and predicting industry evolutions. 
     

  • Customer Insights: We provide deep learnings around customers, including customer characteristics, sentiment, and demand by developing archetypes, to enable our clients to craft product, marketing, and pursuit strategies tailored to customer preferences.   

Success Stories

  • A national oil company (NOC) intended to commercialize its intellectual property portfolio in the US market but required support in determining the optimal route to market. Pointe recommended a partnership model and supported the identification of a sales and implementation partner. With Pointe’s guidance, the NOC was able to exceed internal return targets and successfully penetrate the US market.
     

  • Middle market PE fund enlisted Pointe to evaluate the attractiveness of an oil field service (OFS) provider in the Bakken. Pointe’s assessment of the target’s forecasted growth, relative to Pointe’s models on drilling and production volumes, identified overly optimistic assumptions around share gain, enabling the PE fund to negotiate a more favorable deal.
     

  • A global PE firm was actively seeking bolt-ons to accelerate its platform strategy for a recently acquired midstream construction firm. Pointe conducted a search-and-screen for viable targets, identifying >100 prospects and supporting the firm prioritize and approach the most attractive targets.

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