Chevron’s announcement of an all-stock deal to buy Hess Corp. valued at $53 billion, is the second mega deal in less than a month, following ExxonMobil’s $60 billion merger with shale driller Pioneer. A sign of consolidation as oil-and-gas players snap up producing assets that generate immediate cash flow and the employees that are producing those assets.

Are we in for a party like it’s 1999? Could the tie-up between supermajors BP and Shell be back on the table? What’s next for Oxy? Will ConocoPhillips make an offer for privately held CrownRock?

Mergers and acquisitions (M&A) activity is back on center stage. As these deals happen, the spotlight shines brighter on the importance of land-related due diligence.

Due Diligence Is How O&G Dealmaking Gets Done!

Due diligence is both time- and labor-intensive. It’s work. It involves asking and answering questions. Building trust. Understanding what a win would look like. But unlike football, it hinges on putting together a deal that benefits both the offense (buyer) and the defense (seller).

“More than 50 years ago, Charlie told me that it was far better to buy a wonderful business at a fair price than to buy a fair business at a wonderful price.”

~Warren BuffetT

Divestiture Due Diligence: Defense Wins Championships

It may be tempting to think, “let the buyer figure it out.” But, thorough due diligence enables sellers to maximize sale prices by reducing risks for buyers. It also smooths the transition process post-close when assets change hands.

Let’s face it, complication creates confusion and uncertainty, which can lead to misunderstandings and hard feelings that hinder deals. When deal making gets emotional, it can lead to irrationality.

Seeking counsel from someone you trust, who is not emotionally involved, safeguards against impulsive decisions.

Land Experts: Your Defensive Line

Proactive divestiture title due diligence, conducted by a skilled land expert like Camalo Energy Resources, provides clarity around financial and legal liabilities. It allows you to identify the gaps and defects before the buyer conducts its due diligence. Data integrity with respect to ownership and obligations is your defensive line.

A land partner like Camalo analyzes much more than just title ownership records, leases, permits, and contracts. We:

All of which enables accurate asset valuation. Reduces post-acquisition surprises. Provides buyers with transparency. Builds trust between parties. Moves the deal along expeditiously. And brings decision makers together, outside of their silos.

Ultimately, proactive divestiture due diligence empowers sellers to be able to sell on their own terms.

Acquisition Due Diligence: Scouting the Opposition

Trust issues are healthy when it comes to acquisitions. You have to protect your business. And you’re relying on critical information to steer your decision-making.

You’ll be building a team of experts to analyze the data you’re given. And we all know that unchecked data discrepancies can lead to financial or legal pitfalls.

That’s where we come in. Like an expert playbook designer, Camalo’s title due diligence process provides the intelligence and insight you need to have confidence in your acquisition.

Buyers’ and sellers’ expectations may look very different. So we look under every rock, while carefully considering the deal terms and your objectives. Because every acquisition is different and you deserve a customized approach.

Land Professionals: Quarterbacking Your Deal

Just like a quarterback reads the defense, acquisition due diligence identifies dealbreakers. We spot the red flags, title defects and actions to take before closing. Doing so allows us to decipher what property interests exist per the public record and contractual agreements.

Before analyzing the seller’s title documents, we evaluate the production history and accounting records to complete the chain of title, identifying liens, lawsuits and encumbrances.

We service deals of all sizes and act as land advisors to your legal, financial and corporate teams. You’ve built a team you can count on, Camalo Energy Resources is the land partner you need to drive your strategic business decisions.

No two deals are the same. Beyond the documents and data, you need a clear understanding of why you’re interested in acquiring, what your team will do with the information, the risks that make sense and those that don’t.

You need a team player with the expertise to get you to the end zone. No fumbles. No interceptions. Just strategic plays based on well-researched analysis of your strengths and their weaknesses.

Huddle Up For The Touchdown

Just as in football, where strategy, teamwork, and expertise decide the outcome, in the world of oil and gas M&A, having a seasoned land expert quarterback your land due diligence process could be the difference between a fumble and a touchdown.

So, whether you're playing offense (acquiring) or defense (divesting), make sure your plays (due diligence) are top-notch. Let's work together to win the championship.

Camalo Energy Resources’ deep industry expertise allows us to bring valuable analysis and actionable ideas to our clients. We’re ready to help guide your business toward its strategic goals through customized land solutions.

Our clients like working with us, and we’re sure you will, too.