Providing Oil & Gas Property Buyers with Environmental Due Diligence

Bolstered by an ESG Dynamics Health Check, the quality of its assets and marketable ESG performance, the South Texas operator is moving forward with confidence to meet its end of year divestiture goal.

 

ESG Challenge

South Texas operator plans to sell all of its assets by the end of the year. Adding complexity to this aggressive timeline, the size of its asset portfolio is extensive and likely to attract only large, publicly traded buyers. As a result, emissions as well as production profiles will play a role in the sale as larger oil & gas companies are under intensifying pressure from Wall Street and their shareholders to focus on ESG.

 

The Solution

ESG Dynamics performed a Health Check for the operator to evaluate the company’s current environmental risks and liabilities that potential buyers are likely to assess as part of their pre-acquisition due diligence. An ESG Dynamics Health Check audits the company’s compliance and environmental performance leveraging proprietary technology, environmental analytics and a wide range of environmental datasets. As part of its Health Check process, ESG Dynamics also benchmarks an organization’s environmental performance against peers, in this case a roster of potential buyers.

If the operator were underperforming, action could be taken to address the issues while a clean bill of health would make the operator a more attractive acquisition target.

 

Top Results

As a result of the ESG Dynamics Health Check, the operator discovered a small number of minor issues that the company has already taken measures to begin resolving. Benchmarking showed that overall, the operator is in better shape on select environmental dimensions than the potential buyers. Indeed, these results are enabling the seller to market its relatively high environmental performance and assets as improving a buyers own ESG performance.

Get started ESG Dynamics Advisory Today!