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Continental Energy Advisors
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Continental Energy Advisors
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Services Offered by Continental Energy Advisors

Advisory Services

Acquisition and Development Financing

  • CEA has significant experience on principal and agent side of transactions.
  • We are uniquely qualified to target companies and assets for clients.
  • CEA evaluates and then advises on optimal capital structure.

Recapitalization

  • CEA aims to provide a best valuation for our client, allowing owners to get a cash infusion while retaining control of company operations
  • CEA professionals have assisted companies in large and small recapitalizations through its vast network of investors and lenders 

Refinancing

  • CEA has the relationships to source new capital to replace any layer of the capital structure:
    • Working capital revolver
    • Senior term loan
    • Second lien
    • Mezzanine
    • Bridge funding
    • Equity

Restructuring

  • CEA focuses on getting a company on its feet and navigating the various distressed environments to create opportunity for future growth and value.


Considerations & Continued Support

CEA has many capital raise considerations and offers support throughout the process.

First, considerations include:

  • Cost of capital
  • Flexibility
  • Transparency
  • Dilution
  • Timing
  • Reporting considerations
  • Liquidity implications
  • Impact of covenants
  • Appropriate structure
  • Exit strategy

From these considerations,

a potential offering becomes a successful offering with:

  • Organizational focus
  • Securities design
  • Value added distribution

A successful offering can include:

  • Traditional private equity funds
  • Energy focused hedge funds
  • Mezzanine funds
  • Distressed funds

Continued support involves:

1. Pre-offering assistance

  • Conduct organizational meeting and due diligence
  • Refine investment thesis to achieve best valuation in current market
  • Prepare marking materials and documentation
  • Establish investor targets

2. Execution

  • Conduct marketing
  • Gather indications of interest
  • Assist investors in their due diligence
  • Negotiate pricing and terms

3. Post-offering support

  • Maintain dialogue with investors
  • Follow-on capital considerations


A&D Advisory Services

  • CEA provides full A&D advisory services to both public and private energy companies. Divestment categories include:
    • Producing assets
    • Midstream
    • Exploration projects
    • Royalties

  • Buy-side advisory services include:
    • First look at upcoming divestments
    • Transaction metric analysis
    • Asset valuation assessments
    • Off-market acquisition recommendations

  • Financial advisory services include:
    • Equity and debt placements for both public and private companies
    • Recapitalization and debt restructuring
    • Strategic advice to financial investors and operating entities


Divestment Transaction Services

Corporate Mergers and Acquisitions

  • CEA professionals have advised public and private companies involved in corporate and asset acquisitions throughout the world, with a primary focus in North America.
  • With experience in both competitive transaction environments and exclusive negotiations, CEA professionals understand the nuances of each situation and have the ability to maintain the delicate balance of each.

Asset Acquisitions and Divestitures

  • CEA offers traditional sell-side services, including negotiated sales and sealed big offerings.
  • CEA sells operated properties, non-operated working interest, and overrides.
  • CEA accepts buy-side assignments with select clients that may provide financing opportunities.

Divestment Process

  • Week 0 - Divestment Strategy and Engagement
  • Week 1 - Data Collection and Marketing Preparation
    • Data room assembly
    • Pitch book / Information memorandum
  • Weeks 2-8 - Asset Marketing Process
    • A&D database - email; direct mail; direct calling efforts
    • Process Confidentiality Agreements and manage online data room
    • Facilitate meetings / teleconferences between our client and interested parties
  • Weeks 9-12 - Negotiation and Closing
    • Negotiated Sale or Sealed Bid

Asset Marketing Options

  • Asset marketing strategy depends on the strategic goal of the client.
    • Price is generally key driver, however seller will weigh surety of closing against price
    • Negotiated versus competitive sale
    • Immediacy of sale (i.e. fire sale versus controlled process)
    • Cash is king
    • Tax implications
  • Marketing options include
    • Publicly announced engagements
      • Press release
      • Email and/or direct mail announcement to broad buyer market
      • Data room - controlled access for active divestments
    • Private engagements
      • Personal email or call to targeted buyers
      • Data rooms - controlled access for active divestments
      • No public announcement
      • No mention on public website

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