DealRoom professionals have crafted an Oil and Gas Due Diligence Checklist to help you navigate your next transaction in the energy industry.
Investing in or acquiring an oil or gas company comes with an inherent risk and potentially great reward. Due diligence is a crucial step in executing any transaction. It helps the buyer identify red flags and appraise the true value of an investment. Beginning due diligence can be greatly intimidating, but DealRoom professionals have crafted an Oil and Gas Due Diligence Checklist to help you navigate your next transaction in the energy industry.
Our checklist is:
Investing in or acquiring an oil or gas company comes with an inherent risk and potentially great reward. Due diligence is a crucial step in executing any transaction. It helps the buyer identify red flags and appraise the true value of an investment. Beginning due diligence can be greatly intimidating, but DealRoom professionals have crafted an Oil and Gas Due Diligence Checklist to help you navigate your next transaction in the energy industry.
Our checklist is:
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Investing in or acquiring an oil or gas company comes with an inherent risk and potentially great reward. Due diligence is a crucial step in executing any transaction. It helps the buyer identify red flags and appraise the true value of an investment. Beginning due diligence can be greatly intimidating, but DealRoom professionals have crafted an Oil and Gas Due Diligence Checklist to help you navigate your next transaction in the energy industry.
Our checklist is:
Regardless of the target’s industry, it is important to look at it through a wide lens. Corporate Due Diligence is designed for you to gain a broad, yet deeper understanding of the target’s leadership, employees, and corporate structure. Items required in this stage include general company and employee information, intellectual property documents, employee benefit and insurance plans, and organizational charts.
When executing an investment in the oil and gas industry, it is essential to scrutinize the Purchase Agreement and identify any potential issues. Additionally, Land Due Diligence is executed to confirm that the information in the Purchase Agreement matches with Lease and Well Exhibit. Performing Land Due Diligence will additionally help when assembling and distributing any Title Defect Notices. Items required in this stage include internal files, Lease and Well Schedules, Purchase Agreements and Schedules, Farmout Agreements, and Unit Declarations.
Prior to completing any investment, merger, or acquisition, you want to ensure that the target is respectable able and won’t come with an oppressive amount of legal issues. Auditing contracts will help you gain a better understanding of the scope of your deal. Items required in this stage include lawsuit data and final rulings, correspondences with auditors, license requirements, and Drilling Obligations.
Some of the most controversial topics regarding the oil and gas industry are environmental concerns and sustainability. Performing Environmental Due Diligence will help you verify conformity with governing environmental laws, identify any hazards, and add to your appraisal of the target’s value. Items required in this stage include Phase I/Phase II Environmental Assessments, historical schedules of spills and leakages, aerial photographs, various samples from the property, and topographic maps.
Purchasing a company riddled with hidden or unknown financial liabilities is most investors’ nightmare. Financial due diligence aims to confirm whether a target’s cash flows and accounting practices are healthy and authenticate information shared by the seller in early-stage “teaser” documents. Items required in this stage include audited and unaudited financial statements, accounting policies and procedures, insurance policies, gas imbalances, and well payout statuses.
Due diligence is a critical aspect of any deal that begins very early in the process and can continue right up until closing. During due diligence, the potential buyer asks questions and requests documentation from the seller that helps the buyer understand the target company and its business. These requests are usually general to start and become more specific as the buyer develops a greater understanding of the target. Buyers use the information provided by the seller to evaluate the opportunities and risks associated with the potential transaction. It is important for sellers to stay organized throughout the process. Buyers often submit thorough, detailed request lists that require input from numerous members of the seller’s deal team.
As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction.
However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.
As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction.
However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.
Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.
No. Our Due Diligence Checklist is drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.
Every M&A process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.
This checklist was created by and for M&A professionals. It includes a comprehensive starting point for the integration process. However, every deal is different and may require additional requirements and tasks.
Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.
No. Our Due Diligence Checklist is drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.