Energy sector bankruptcies are typically very complex requiring multi-faceted advisory teams with direct industry experience and sector content knowledge. At the outset, many energy-related bankruptcies include substantial and geographically-diverse groups of both tangible and intangible assets. Pearson Adair & Co. professionals have been retained to provide advisory services in some of the largest bankruptcies in the U.S. We are frequently engaged in bankruptcy situations to assess reorganization alternatives, evaluate potential divestitures, value tangible and intangible assets, analyze business plans, and determine management requirements in the short and medium terms. We have also advised banking clients in workout situations and credit negotiations, in particular providing recommendations for covenants and reporting metrics.
At Pearson Adair, we maintain in-house databases and our professionals have direct industry content knowledge that our consultants rely on when advising clients with interests along the energy value chain. We can provide technical evaluations and commercial assessments to simplify complex business plans and prioritize key success factors. Our bankruptcy/workout advisory experience includes large worldwide marketing and trading companies, providers serving the gas-liquids-refined products segments, energy sector service providers, exploration and production companies, refiners and refined product marketers. Whatever your needs, Pearson Adair & Co. can provide the advisory services necessary to efficiently navigate the unforeseen circumstances that often accompany bankruptcy.
Advisory to Bank Group, Market Analyses/Evaluation/Assessment of Business Plans for Large Integrated Midstream
Retained by Creditor Group to provide market analyses, evaluation, and assessment of crude oil gathering/trading, natural gas processing, natural gas storage, asphalt manufacturing, and liquefied petroleum gas business segments for the SemGroup of assets. Work included analysis and assessment of reorganization plans, evaluation of asset market positioning, and assessment of resources required to emerge from bankruptcy. Scope of work included management interviews, participation in creditor group meetings, independent assessment of markets, and determination of potential credit requirements for reorganized business segments.
Led assignment to evaluate the operation and administration of an independent oil and gas production company in breech of existing loan covenants. Provided assessment of overall business valuation to lender group. Advised lenders regarding ongoing business operations, repayment options, and restructuring of loan covenants.
Evaluation of Crude Oil Gathering Operations
Retained by creditors to evaluate the ongoing operations of a crude oil gathering and marketing company operating in conjunction with a merchant refiner located in the southwestern U.S. Work included the assessment of crude oil gathering pipeline operations, trucking operations, system inventory, contract analysis, and risk management activities. Completed a detailed economic analysis of historic profitability and constructed pro forma analysis of business including new venture opportunities.
Valuation, Development Bankruptcy Proof of Claim
Retained by Enron counterparties in commodity and interest rate swap contracts to determine damages and assess amounts owed by the Enron estate to the partnership.
Management of Royalty Trust
Provided business management, administration, and oversight for $100 million oil and gas royalty trust. Retained by owners of the trust as agent of the General Partner of the trust to manage day-to-day business functions, confirm production, invoice and confirm payments, and administer oil and gas marketing contracts as necessary. Managed the transition of the agent from Enron-affiliated management post-bankruptcy.