Corporate Valuation, Oil & Gas

April 17, 2018

Capital Structure in 30 Minutes Whitepaper

In this post, we share a recent whitepaper: "Capital Structure in 30 Minutes." Capital structure decisions have long-term consequences for shareholders.  Directors evaluate capital structure with an eye toward identifying the financing mix that minimizes the weighted average cost of capital.  This decision is complicated by the iterative nature of capital costs: the financing mix influences the cost of the different financing sources.  While the nominal cost of debt is always less than the nominal cost of equity, the relevant consideration for directors is the marginal cost of debt and equity, which measures the impact of a given financing decision on the overall cost of capital.  The purpose of this whitepaper is to equip directors and shareholders to contribute to capital structure decisions that promote the financial health and sustainability of the company. This whitepaper is the second in the "Corporate Finance in 30 Minutes Series." Learn more about the whitepaper series below.
  • Corporate Finance in 30 Minutes
    • In this whitepaper, we distill the fundamental principles of corporate finance into an accessible and non-technical primer.
  • Capital Structure in 30 Minutes
    • Through this whitepaper, we equip directors and shareholders to contribute to capital structure decisions that promote the financial health and sustainability of their companies.
  • Capital Budgeting in 30 Minutes
    • Capital Budgeting in 30 Minutes assists directors and shareholders evaluate proposed capital projects and contribute to capital budgeting decisions that enhance value.
  • Distribution Policy in 30 Minutes
    • Of the three primary corporate finance decisions, distribution policy is the most transparent to shareholders. This whitepaper helps directors formulate and communicate a distribution policy that contributes to shareholder wealth and satisfaction.

Continue Reading

“He’s Not Done Yet!” Oil Company Valuations Rise As Scale And Scarcity Drive Consolidation
“He’s Not Done Yet!” - Oil Company Valuations Rise As Scale And Scarcity Drive Consolidation
Oil E&P valuations are rising despite flat prices, driven by scarcity, inventory depth, and scale, highlighted by the Devon-Coterra merger and ongoing shale consolidation.
Eagle Ford: Steady as She Goes in a Year That Wasn’t
Eagle Ford: Steady as She Goes in a Year That Wasn’t
Eagle Ford maintained stable production despite declining rig counts, reflecting basin maturity and disciplined capital investment. Commodity price volatility, particularly driven by geopolitical events, played a key role in shaping recent performance and outlook.
Eagle Ford Shale M&A Update
Eagle Ford Shale M&A Update
Eagle Ford M&A activity remains limited, driven by basin maturity, capital discipline, and competition from higher-return regions like the Permian. Transaction activity is expected to stay selective, with incremental deals tied to portfolio optimization and divestitures.

Cart

Your cart is empty