Conway MacKenzie works with companies throughout the energy industry to overcome some of the biggest challenges the sector has faced in decades.
The firm’s professionals are turnaround and restructuring experts with significant energy industry experience and backgrounds in distressed investing, corporate finance transactions, strategic planning and forecasting, accounting, auditing and bankruptcy law.
We help clients overcome the obstacles, and take advantage of the opportunities, that today’s volatile energy market presents. Our services range from assisting energy companies to restructure operations and finances (both in- and out-of-court), helping them to find new sources of capital, and working with them to maximize value while buying and selling assets. We also represent secured lenders who have extended credit to distressed energy companies, as well as investors with equity positions.
We often serve in the roles of Chief Executive Officer, Chief Financial Officer and Chief Restructuring Officer to under-performing energy businesses, leading turnaround efforts that improve operations, cash flows and balance sheets.
Our experience in the industry and our approach to helping clients is unique:
- We have successfully worked on more than 25 energy industry-focused turnaround, restructuring, and corporate finance matters since 2010, including serving in 14 interim C-level officer roles.
- We serve a diverse client base that includes public and private companies, energy banks, mezzanine lenders, private equity and hedge funds.
- We have extensive relationships within the distressed lending and investing arena, which offer creative financing options where none might otherwise appear to exist.
- We apply a proactive, hands-on problem solving style with experienced, senior team members actively involved on deal teams.
Based in Houston and Dallas, Conway MacKenzie’s Energy Advisory Services Team is strategically located and readily available to the industry’s businesses, investors, secured lenders and other constituents to advise or manage through financial and operational challenges. The Energy Advisory Services Team is also able to tap into Conway MacKenzie’s additional national and international multi-disciplinary capabilities.
Our team, our services, and our approach to problem solving are all geared toward helping clients address the unique challenges presented by today’s market.
The energy industry is being hit hard by lower crude oil prices, which is sending shockwaves through the entire sector. A drastic price decrease followed by volatility in WTI and ICE Brent oil prices occurred in late 2014 and early 2015. The factors contributing to these price drops and volatility are varied and complex, and include:
- Increases in global oil supply, a strong U.S. dollar and economic weakness in Europe and Asia have all contributed to oil price declines, taking energy industry equity prices down with them.
- Oil has struggled with a supply glut from the U.S. shale boom and OPEC’s unwillingness or inability to moderate production in the Middle East.
- Natural gas production in the U.S., particularly from shale, has materially increased over the last seven years.
Because oil company profits and revenues are down due to lower oil prices, capital expenditures are being cut. Oilfield services and exploration companies have been particularly hard hit. Oil rig count, for example, began to soften during the fall of 2014, and is down significantly since the middle of October 2014.
Change is constant in the energy industry, and market participants must continually adapt to survive and thrive. Through our work, involvement in relevant associations, thought leadership, and past professional experience, Conway MacKenzie remains at the forefront of the energy industry and stands ready to assist clients with the challenges and opportunities they face.
View Select Case Studies
Exploring Options For Success
Conway MacKenzie was engaged to assist a private equity owned natural gas focused exploration and production company. Various factors reduced the company’s revenue which, together with increased capital costs associated with its drilling program, resulted in a liquidity crunch for the company.
At the time of our engagement, the company’s finance department was dealing with a lack of skilled resources and was faced with the need to raise capital, manage cash liquidity, forecast multiple operating scenarios and complete an already delayed annual audit.
Conway MacKenzie’s highly experienced industry professionals provided inflection with the following value-added services: Chief Accounting Officer and financial analyst, key process management, diligence coordination, weekly cash forecasting and management, scenario modeling, business plan development and budgeting, and accounting/finance process improvements.
- Executed amended and restated credit facility which added two more banks to the group, increased the borrowing base by $60 million and amended certain covenants
- Raised $225 million of preferred equity from an energy-focused investment firm
- Developed 2015 budget and operating plan in an uncertain natural gas price environment
- Developed 3-year forecast model which allowed for planning under multiple different price, production and operating scenarios
- Developed detailed 13-week cash flow model which greatly improved visibility to liquidity and allowed for improved cash management
- Completed the annual audit under tight deadlines and issued audited financial statements to the banks in time to close amended and restated credit facility
- Implemented enhanced budget, forecasting, financial and operational reporting and accounts payable processes, while significantly improving communication between the finance, accounting, operations and land functions