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downstream M&A IT integration

Leveraging our extensive downstream M&A experience, we develop a framework of plans and accelerators to guide acquisition teams from due diligence through full integration of a refinery into the business.

Downstream M&A IT Integration

The merger and acquisition (M&A) process of a new downstream refining asset is an exciting time for any company, with growth and new possibilities on the horizon. Realizing those possibilities, however, doesn’t come guaranteed with the purchase price—downstream assets are large, complex operational businesses that require preparation and careful integration. Opportune has assisted numerous companies through successful M&A integrations, playing key roles in nine refinery acquisitions (and counting).

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What Can IT Do To Prepare For The Next Major Asset Acquisition Or Add Value Within The M&A Process?

Develop An M&A Playbook

Invest in standard technical questionnaires and an evaluation plan to create a standardized and reusable approach.

Complete A Thorough Technical Due Diligence

Ensure the technical due diligence includes all aspects of IT.

Build A Complete Cost Profile

Ensure the technical due diligence includes all aspects of IT

Involve The Business

Transition activities, including testing of carve-out systems, require both IT and business involvement.

How Do You Execute This?

1.

Prepare

Perform due diligence and prepare integration playbook.

2.

Transition

Execute critical activities and ensure a smooth transition.

3.

Integrate

Optimize the post-merger integration and deliver value.

Opportune’s Downstream M&A Integration Experience

Opportune has a proven track record of leading many recent downstream M&A integrations. We work with client management teams to develop and implement integration and synergy realization plans. Opportune is the rare firm that can provide the broad range of M&A services supporting the overall integration team efforts, including operations, financial reporting, finance, tax, IT, HR, and legal functions.

Leading Fortune 500 Independent Refiner
  • Managed and executed all IT transition activities (applications, infrastructure, licenses/contracts) for five acquisitions from three different sellers
  • Served as Interim IT Director responsible for corporate applications, compliance, and acquisitions
  • Developed IT application architecture, including identification of key business systems
  • Designed and implemented back-office reporting, plant maintenance, and procurement system (SAP)
  • Implemented commercial (RightAngle), tax, and ancillary systems
Independent Refining Company
  • 185,000-BPD mothballed refinery purchased for $180 million by buyer to help hedge their jet fuel price exposure
  • Served as the CIO of Independent Refining Company
  • Managed the refinery start-up activities, including operational, commercial, and corporate systems
  • Implemented new systems, including the marketing system OpenLink RightAngle
  • Developed interfaces between refining applications and corporate applications
  • Extended transition and support of applications and systems
Leading Fortune 500 Independent Refiner
  • 149,000-BPD Puget Sound refinery acquisition from Shell
  • Worked with deal team to augment the client’s M&A integration tools with Opportune Methodology to create a comprehensive playbook prior to deal
  • Currently executing playbook with business and IT
  • Managing the commercial transition activities
  • Coordinating workshops to finalize change-in-control plan and TSA
Leading Midstream Company
  • Led systems integration work for Chevron pipeline acquisition; four assets running in three different gas pipeline commercial systems
  • Completed purchase price allocation of two different midstream acquisitions
  • Served as project manager for overall Day 1 and post-Day 1 system conversions
  • Coordinated integration activities with seller’s IT and business groups
  • Worked with business users across multiple functions: SCADA, contract admin, scheduling, and back-office reporting
  • Performed future-state software rationalization and selection and implementing new gas pipeline commercial system

IT Toolkit: Opportune Methodology For M&A Transitions

Opportune brings a proven methodology for managing M&A transitions that reflects our decades of experience leading cross-functional mergers, integrations, and divestitures of assets and corporate purchase transactions in the downstream industry sector.

  • Cataloged processes, plans, and tools
  • Mature templates with accelerated deliverables
  • Functional decomposition matrix
  • Refinery application database
  • Refinery IT transition work breakdown structure (WBS)
  • Detailed 90-day integration plans
  • Master and reference data listing
  • Cutover and conversion plans

Case Studies

Midstream: Process & Technology: M&A Systems Integration

Leading midstream energy company (“the Company”) owns pipelines, processing facilities, and storage/terminaling facilities primarily for natural gas and NGL throughout the middle U.S. The Company has approximately 12,000 miles of pipeline transporting natural gas, NGL, crude oil, and condensate. [...]

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Midstream: Process & Technology: Data Conversion & Infrastructure Deployment In Connection With Merger

Leading Fortune 500 company (“Company A”) is one of the largest and most diversified midstream energy companies in the U.S. with approximately 90,000 miles of pipelines and associated energy infrastructure across 38 states transporting oil and gas products. In 2015, the Company announced it would merge with another midstream energy company (“Company B”). A year later, the companies canceled the merger agreement. [...]

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Downstream: Process & Technology: M&A It Transition

Independent refining company (“the Company”) produces gasoline, diesel fuel, jet fuel, lubricants, and asphalt. The Company operates four complex oil refineries with a total crude oil processing capacity of 405,000 barrels per stream day (bbl/sd). In May 2021, the Company announced that it entered agreements with the former owner/operator (“the Seller) to purchase a 149,000 bbl/d refinery located on the U.S. West Coast, as well as on-site cogeneration facility and related logistics assets, for $350 million. [...]

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Downstream: Process & Technology: Refinery M&A It Transition

Independent refining company (“the Company”) is a wholly-owned subsidiary of a Fortune 500 company (“Parent Company”) and operates a refinery on the U.S. East Coast. In 2011, the refinery was idled and ceased operations until late June 2012 when the refinery was officially acquired by the Company from a previous owner. Shortly after the acquisition, the Company began the turnaround with more than 1,200 contractors on-site to bring the refinery online. [...]

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Downstream: Process & Technology: Refinery M&A It Integration

Leading Fortune 500 independent refiner (“the Company”) is one of the largest independent petroleum refiners and suppliers in the U.S. of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and other petroleum products. In 2010, the Company first acquired a refinery on the U.S. East Coast, and then the Company acquired a refinery in the Midwest for about $400 million. [...]

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Kent Landrum

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Steve Roberts

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