The Challenge

A leading public Exploration and Production company made five large acquisitions within twelve months. It was a very active year of acquisitions to fuel company growth.

These acquisitions led to a mountain of valuation and complex financial reporting issues. The volume and size of the acquisitions strained internal resources, which were focused on the on-going operations of the company.

To address resource constraints, management sought external expertise. The experts would need to help navigate the valuation of the assets, the complex accounting analysis, and meet the demanding deadlines of SEC filings.

Management wanted energy experts. They needed professionals with regular involvement in similar transactions that could provide invaluable insights to streamline the process and help navigate unforeseen issues.

The Solution

Opportune was engaged to provide valuations and financial reporting expertise.

The team’s experience working with public companies, deep upstream oil and gas experience, and previous experience assisting other clients navigate similar situations, was uniquely situated to assist the Company through the five transactions.

Each transaction had individual nuances and characteristics, which made it imperative to be in constant communication with the client and their auditors to ensure a smooth process.

Opportune’s valuation and complex financial reporting teams seamlessly collaborated to tackle complex workflows to meet the clients needs.

With Opportune’s expertise and assistance, the Company was able to streamline the audit process for all five purchase price allocations as well as the accounting determination between business combination vs. asset acquisition for each transaction. Opportune documented the acquired assets and liabilities assumed, evaluated the acquisitions to determine if each transaction represented a business combination or asset acquisition, prepared significance tests and the resulting required pro forma disclosures, footnotes and standardized measure disclosures and provided audit assistance to support the company’s personnel throughout the process.

Business Impact

• Streamlined Audit Process: Opportune's experience helped avoid delays by identifying and mitigating potential audit issues early.
• Economies of Scale: With five large acquisitions, the team leveraged their expertise efficiently and aligned expectations for each transaction.
• Efficient Cross-Disciplinary Navigation: By combining expertise, the teams efficiently tackled complex valuation and financial reporting tasks.
• Enhanced Communication: Opportune facilitated seamless communication between the company, auditors, and internal teams across various workstreams.
• Reliable and Defensible Documentation: The company gained supporting documentation ensuring accurate and defensible documentation for key considerations.
• Timely Delivery: Opportune's approach ensured timely completion of deliverables, meeting critical deadlines