Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
We continue our interview series with Justin T. Stolte, partner at Gibson, Dunn & Crutcher LLP. Part three picks up by looking at how deals are getting done.
Stolte looks at how deals are getting done through novel deal structures or mechanisms such as valuation divides and contingent payments.
Stolte says contingent payments can be used across the industry. “On the upstream side we are typically seeing contingent payments tied to commodity prices. But on the midstream side or the downstream side, those contingent payments look more like earn-outs. They are really tied to the performance of the underlying business. If there is some set criteria where the business post closing is performing better than the parties anticipated there needs to be a means in a lot of deal makers eyes for the buyer to compensate seller.”
VIDEO SERIES: Challenges Ahead For M&A Transactions Market
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
2024-01-29 - The Canadian company says it is still working for a last listed in-service date by the end of 2Q 2024.
2023-12-29 - Cheniere will reduce one of its three planned trains for a Sabine Pass LNG expansion, but the company says the change won’t greatly affect its production capacity.
2023-12-12 - Total interstate gas sample receipts averaged 6.3 Bcf/d, as Permian Basin gas volumes met California demand.
2024-01-02 - To convince the market of OPEC+’s ability to sway oil prices, the international organization will have to take back control and maintain production cuts at least until the second quarter of 2024.