B M O C A P I TA L M A R K E T S
BMO CAPITAL MARKETS
Part of the Solution to
Decarbonising the Economy PRODUCTION: BMO Capital Markets
Founded in 1817, BMO Financial Group and its Capital Markets division is one of North America’s pre-eminent, full-service financial institutions. BMO Capital Markets offers corporate and investment banking, treasury management and research and advisory services to clients around the world, and has been working closely with the energy sector for more than a century. BMO’s Energy group has sector specialisations that include exploration and production, midstream and energy infrastructure, and oilfield services. www.energy-focus.net / 3
OIL FINDERS: GLOBAL, TRUSTED, RELIABLE, SECURE Oil Finders is the trusted third-party for energy businesses and investment banks when it comes to secure A&D activity around O&G pools, property, farm-outs, or corporate sales. This innovative business enables buyer and seller to transact with confidence. 20 years ago, when the world’s big resource companies looked to offload an asset, there was a lot of networking between industry peers and much word-of-mouth promotion. The digital age has changed the process immeasurably and now deals happen faster, with more knowledge, and from anywhere in the world. Facilitating the process involves a complex sales strategy where experts from different fields meet to assess the pertinence of an opportunity. Assets are often marketed by investment banks, and owners want best pricing with buyers searching for quality information around production. Enter Oil Finders - a bespoke, boutique consultant to the world’s biggest energy businesses for acquisition and divestiture activity, providing secure data rooms and relevant geoscientific info – headed by industry veteran and innovator, Todd Knight. Headquartered in Calgary, Knight clips into client organisations - including BMO Capital Markets, ExxonMobil, Esso, Shell, and several of the world’s largest investment banks – bringing unrivalled expertise to a secure data room so that crucial decisions can be taken. “It involves facilitating data rooms for people to review projects to make sure people are not purchasing dirt – they want to buy oil producing assets and not just throw darts at the wall. People want seismic data so that they can see what is going on below the surface and they can drill for something that is highly profitable,” says Knight. A blend of technology, science, energy, finance, and sales, Oil Finders provides buyers and sellers with secure data that is accessible from anywhere at any time, using industry-standard software. “I keep everyone’s data safe, for everyone and from everyone. People trust me with enormous projects that must not escape the computer that they are being reviewed on,” says Knight. “I have worked with Cheryl Sandercock at BMO Capital Markets for decades. All projects that involve technical aspects – if somebody is trying to sell an asset with seismic data, geology or scientific data – I can run multiple data rooms, and have done that for decades. “When an asset for sale requires integration with technical softwares – geology, geophysics, and engineering – that is when I get involved. I display the data in a meaningful way. The last thing a reviewer wants to do when they enter a data room, under tremendous pressure to get in and review data in a short period of time, is search around for which buttons to press. They want to get in and use industry-standard software, and that is what I provide.” Importantly, this process provides reviewers with certainty around assets upside, and this ensures confidence which can help achieve best pricing. “I’m a geophysicist, I have drilled many oil and gas wells – I know what is important,” states Knight. “I can swing the bid by around 10%. I give an extra feeling of comfort by displaying all necessary information and if anyone is holding back, I make people feel extra comfortable by giving access to absolutely everything.” Efficiency, security, flexibility, simplicity, and the provision of a full turnkey service allows for the reduction of risk through an acquisition or divestiture process. For a quarter century, Oil Finders has been delivering a suite of services that help power the industry’s transactions. “My customers rave about me because I make their lives so much simpler by providing the tools, on their desktop, helping them to make decisions,” declares Knight. “Last year, I worked on one of the world’s largest discoveries and that has come back to me this month. I have been involved twice with the sale of Devon Energy in Canada. I am involved with sales for the world’s preeminent energy organisations and financial institutions – all of these companies come into my data rooms on a regular basis to view projects that are for sale from an entity like BMO Capital Markets.” Acting as a gatekeeper and keyholder in front of some of the most valuable informational assets that an energy company could hold, Oil Finders leaves no stone unturned when it comes to GG&E information in a data room. Growing with the industry, the company is able to operate in markets all over the world and can adapt to suit the needs of operators in new market sectors as well as the traditional hydrocarbon industry. Knight, a true innovator and problem-solver, highlights his impressive success rate and subsequent lasting relationships as a key driver behind Oil Finders sterling reputation. “I have had oil company assets under my belt through investment banks globally for more than twenty years. My partnerships are long-standing and made with real people,” he concludes.
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Oil Finders Powering transactions for energy, oil and gas
Maximising transactions by detailing GG&E information in secure, flexible, straightforward data rooms that are accessible from anywhere in the world. • Global Data Security • Synchronized Projects • Flexible Software Rental
• GG&E Expertise • Dynamic Process Oversight • Encrypted Data Rooms
Project data that travels, so you don’t have to
Contact us today to discover the true potential in your A&D transactions Todd.Knight@OilFinders.com - President, Geophysicist | +1-403-620-4623 www.energy-focus.net / 5
INDUSTRY FOCUS: FINANCE
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“My team, the acquisitions and divestiture advisory group, forms part of BMO’s broader Investment and Corporate banking coverage of the energy sector,” says Cheryl Sandercock, Co-Head, Energy A&D Advisory and a Managing Director in BMO Capital Markets. “Our team members are predominantly technical specialists, including geologists and engineers, who understand the energy assets and technical aspects related to owning and operating these assets.” The A&D group assists companies who are selling energy assets to
position them appropriately from a technical and operational perspective, as well as improving the confidence of potential acquirors, who will have technical questions and appreciate interacting with professionals who have that technical insight. “Our core business is advising energy clients on their acquisitions or divestitures of assets or companies,” explains Sandercock. “We collaborate with BMO’s Mergers and Acquisitions team and our services include the evaluation of assets, the managing of a marketing process if a sale or liquidity
// OUR TEAM MEMBERS ARE PREDOMINANTLY TECHNICAL SPECIALISTS, INCLUDING GEOLOGISTS AND ENGINEERS, WHO UNDERSTAND THE ENERGY ASSETS AND TECHNICAL ASPECTS RELATED TO OWNING AND OPERATING THESE ASSETS //
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event is desired, perspectives on value given current market conditions, strategic options, competitive landscape for a company or asset, and advising on negotiation tactics. In an environment as volatile as today’s energy market, we act as that experienced advisor helping our clients get the results they want.” TRANSITION UNDERWAY As the world looks for solutions to climate change, reducing carbon emissions has become a priority for businesses. BMO has declared it’s ambition to be its clients’ lead partner in the transition to a net zero world. Carbon neutral for more than 10 years, in 2021 BMO committed to deploy $300 billion in capital to clients pursuing sustainable outcomes through green, social and sustainable lending, underwriting, advisory services, and investment by 2025. Later, as part of its overall 2050 net-zero commitment, it became the first bank in Canada to
BMO CAPITAL MARKETS
// EVERYBODY, WHETHER AN ENERGY PRODUCER OR AN ENERGY USER, IS GOING TO BE AFFECTED BY THE TRANSITION, AND BANKS HAVE AN IMPORTANT ROLE TO PLAY // set interim targets including a 33% cut in scope 1 and 2 emissions from oil and gas borrowers and a 24% reduction by 2030 in scope 3 emissions. And recognising that change can only come about if everyone works together – business, government and people – BMO launched a dedicated Energy Transition Group and committed to being its clients’ lead partner in their pursuit of opportunities driven by the increasing momentum of the global economy’s shift in production and consumption of energy. “All of our clients have energy transition and decarbonisation as important business focuses and BMO is able to play a key role in helping them to achieve their objectives in these areas,” says Aaron Engen, Vice Chair, Investment and Corporate Banking and Co-Head, Energy Transition. “We believe that in working with clients in an inclusive way, we can more effectively support the economy’s transition to net zero. In the energy industry, for example, by working with energy firms to support their transition, rather than pursuing blanket divestment, we will make the progress needed to achieve net zero outcomes faster. And as the global economy undergoes structural changes in how energy is produced and consumed, we will apply the same entrepreneurial spirit and innovation we’ve helped grow for over two centuries.”
Cheryl Sandercock Co-Head, Energy A&D Advisory and Managing Director
// WE BELIEVE THAT IN WORKING WITH CLIENTS IN AN INCLUSIVE WAY, WE CAN MORE EFFECTIVELY SUPPORT THE ECONOMY’S TRANSITION TO NET ZERO // According to Engen, conversations with clients often include the topics of energy transition, decarbonisation, and where business opportunities exist in those areas. BMO is uniquely positioned to help its clients. To do this, the bank leverages three different but critical areas of expertise: The Energy Transition Group with industry leading sustainable finance advice and solutions; BMO’s Corporate Sustainability team which ensures BMO continues to be a global sustainability leader aligned to strict performance standards; and the BMO Climate Institute, which brings academic rigour, science and thought leadership to clients, communities, and the bank. “In Capital Markets, the Energy Transition Group and the Energy
franchise work very closely together,” Sandercock furthers. “We have staffed the ETG with experts, including from my team, who work across all industry groups in energy transition to assist clients. Everybody, whether an energy producer or an energy user, is going to be affected by the transition, and banks have an important role to play helping our clients manage the impact of the energy transition on their business. Helping our clients adapt and thrive through the coming transition requires a thoughtful, balanced and accelerated approach.”
WWW.CAPITALMARKETS.BMO.COM
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Published by CMB Media Group Chris Bolderstone – General Manager E. chris@cmb-media.co.uk Kiln House, Fuel Studios, Pottergate, Norwich NR2 1DX T. +44 (0) 1603 855 161 www.cmb-media.co.uk CMB Media Group does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/ or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © CMB Media Group Ltd 2022
THE BUSINESS MAGAZINE FOR ENERGY LEADERS
www.energy-focus.net
May 2022
25 Years of Safe, Reliable, Quality Offshore Service Exclusive interview with Jamie John - VP Oil & Gas ALSO IN THIS ISSUE:
Windlogix / Wellynx / Rotterdam Rijn Pijpleiding / Oando
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ENERGY FOCUS
MAY 2022