The Energy sector can be divided into ‘Energy Equipment & Services’ and ‘Oil, Gas & Consumable Fuels’. Energy Equipment & Services companies generally support Oil, Gas & Consumable Fuels companies. Examples of Energy Equipment & Services companies include pipeline products, tank storage companies, specialized engineering firms, electricity grids, power plants, etc. Oil, Gas & Consumable Fuels companies include oil and gas prospectors, refineries, gas stations, etc.
Typical characteristics of energy industry companies include long investment cycles, high barriers to entry and a stringent permitting process. These are typically asset-heavy companies with expensive, long-lived equipment. Operating profit does not paint a complete picture in this industry. Value can be substantially impacted by capital investments, which may occur in large increments or deep into the future in some cases.
AN Valuations and its global network is a leader in energy industry valuation support, in particular Purchase Price Allocation. Located between Europe’s largest crude oil port (Rotterdam) and gasoline port (Amsterdam), and with our partners in Houston, AN Valuations is at the heart of the global energy industry.