Analysis, Valuation, & M&A in Oil & Gas: M3 Downstream Assets: Analysis & Valuation of Refining & Marketing Assets & Firms

Analysis, Valuation, and M&A in Oil and Gas (Modular Course) 15-18 December 2014, Hong Kong M1 - Analysis and Valuation of Reserves and E&P Companies 15-16 December 2014, Hong Kong M2 - Midstream Assets: Analysis and Valuation of Gathering and Transmission Assets and Firms 17 December 2014, Hong Kong M3 - Downstream Assets: Analysis and Valuation of Refining and Marketing Assets and Firms 18 December 2014, Hong Kong Each module can be booked separately. Attend all the modules and save US$2,280. Contact energy@euromoneyasia.com for more information.
Day 1 M3 - Downstream Assets: Analysis and Valuation of Refining and Marketing Assets and Firms Just as many “integrated” oil and gas firms have midstream assets, many also have downstream assets, such as refineries and petrol station networks. Many firms historically have been “pure-play” refining and marketing (R&M) firms. But a second worldwide revolution among “integrated” companies has been their disposal, via spinoffs, of their R&M assets as pure-play companies. Once again, this revolution has resulted in enormous capital-raising and M&A activity. Traditional pure play refiners and marketers The break-up wave: marathon, conoco, hess, occidental petroleum Cashflow metrics - Price/earnings - Price/cash earnings - EV/EBITDA Price/book value Sum-of-the-parts analysis Refining and marketing assets as “infrastructure private equity” – inflation hedges Environmental rectification liabilities: a big potential headache for R&Ms Case studies: China’s Big R&M Firm: Sinopec Esso Oil (Thailand) initial public offering Exxon sale of Japanese R&M assets Marathon Petroleum: now an R&M Pure Play Break-up of Conoco into Conoco and Phillips 66 Sum-of-the parts valuation of “Big Integrateds” M&A in Oil and Gas: Bringing it all together: M&A in the energy sector The centrality of energy to modern life, the scale of the sector, its capital intensity, and its inherent risks have all made it a fertile area for capital-raising and consolidation activity. The range of asset types – upstream, midstream, downstream – as well as corporate forms – corporations, trusts, master limited partnerships – add to this richness. E&P vs. midstream vs. R&M assets Sum-of-the-parts analysis DCF valuation in M&A Comparable firm analysis in M&A Comparable transaction analysis in M&A Operational metrics in M&A Accretion and dilution and credit/funding issues Case studies: Union Pacific Resources takeover of Norcen Energy Excel model of Norcen Energy Reserves: “blowdown scenario” Excel model of Norcen Energy Reserves: “growth scenario” Course summary and close