On behalf of a major U.S. oil company, provided technical and economic analysis in support of the acquisition of a foreign refining and marketing company. The work included development of a supply/demand and pricing/margin outlook, a review of the geopolitics factors, and an assessment of the company’s competitive refining and products marketing position.
VALUATION OF MAJOR U.S. REFINING AND MARKETING COMPANY
On behalf of a major European oil company, and in conjunction with a large London-based financial institution, undertook a detailed technical and economic analysis of a U.S. refining and marketing company, in support of possible acquisition. The work involved visits to the major assets including two state-of-the-art refineries, and wholesale and retail marketing assets across eleven states, and interviews of key personnel. A fair market value was derived based on proforma cash flow, with sensitivities reflecting future potential improvements in operation.
PRIVATIZATION OF REFINERIES IN MOROCCO
Assisted the government in the privatization of the SCP refinery and associated terminals in Morocco. Muse Stancil’s efforts included visits to the facilities, valuation of the assets, and preparation of an offering memorandum. At a later date, assisted an investor in the evaluation of the SAMIR refinery for potential investment.
NORTHWEST EUROPEAN REFINERY
Prepared an evaluation of a refinery for potential acquisition by a confidential client. The market value of the facility was estimated using three standard valuation methods: profitability analysis, physical asset appraisal, and comparable sales. Profitability analysis included evaluation of the refinery’s competitive position relative to recent and proposed changes in product specifications in the Northwest European market.
U.S. GAS GATHERING AND STORAGE
Assisted Pacificorp, a large U.S. West Coast utility, in the evaluation of TPC Corporation. TPC’s assets included gas gathering, gas processing, and gas storage facilities. The resulting acquisition was in excess of $400 million.