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Deloitte Oil & Gas Mergers and AcquisitionsAn uncertain pricing outlook dampens activity

Deloitte Center for Energy Solutions

Oil & Gas Mergers and Acquisitions ReportMidyear 2012

Source: IHS Herold

Table of contents

Introduction by Deloitte’s Vice Chairman, Oil & Gas 1

Industry Overview 2

Exploration & Production 4

Midstream 6

Oilfield Equipment & Services 8

Refining & Marketing 10

Summary 13

Table of contents

Introductory comments 2

Industry overview 3

Exploration & Production 6

Midstream 8

Oilfield Equipment & Services 10

Refining & Marketing 13

Summary 16

M&A Midyear 2012 Report 1

“Low U.S. natural gas prices may create an opportunity for super major energy companies to enhance their portfolios.”

As used in this document, "Deloitte" means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

After a flurry of deal activity late in the second half of 2011, the first half of 2012 brought a modest decline in both deal count and total value of oil & gas transactions. Uncertainty over the world economic outlook and a pullback in energy prices may have had a short-term impact on acquisition activity. However, the softness in oil prices during the first half of 2012 may prove to be a temporary blip, and are likely to recover and remain strong over the longer term.

The prolonged weakness in U.S. natural gas prices is a different story. An abundance of North American supply is expected to keep U.S. natural gas prices low for the foreseeable future. Pricing concerns have created uncertainty around domestic natural gas shale development, and in response we have seen a decline in U.S. gas drilling, with producers that have the portfolio and capabilities shifting their attention to oil and liquids plays. This situation will likely put pressure on smaller companies that are focused mostly on natural gas production, but will likely also create an opportunity for larger companies to acquire U.S. natural gas assets at low prices. A prolonged period of high oil prices has left the super majors and national oil companies (NOCs) with ample cash to fund buying opportunities. We believe that because of this dynamic, lower natural gas prices may drive a stronger domestic mergers and acquisitions (M&A) market in the months ahead.

The attraction of U.S. natural gas assets lies in the great discrepancy between depressed current domestic prices and both future demand growth potential and existing wide spreads with natural gas prices overseas. Domestically, low prices have already contributed to a resurgence in the U.S. petrochemical industry and a major shift by utilities away from coal to natural gas for electricity generation. The pricing situation also creates the potential for the U.S. to become a major exporter of liquefied natural gas (LNG)

in the years ahead. Before the shale gas revolution, when the U.S. faced the prospect of having to import LNG to meet its energy needs, the idea that the country would be a net exporter of natural gas was unheard-of. Now, LNG exports from the U.S. may become a reality. If the U.S. starts to export LNG just as new world supplies begin to come into the market from large producers such as Australia and Qatar, some interesting dynamics will likely be created in the global natural gas markets.

Around the world, interest in deepwater exploration and production remains high. The super major oil & gas companies are exploring opportunities in deepwater off the coast of Angola, and we are even seeing development begin in the Arctic. Activity has picked up in the U.S. Gulf of Mexico, now that the moratorium on permits has been lifted. The Gulf has regained its standing as one of the most attractive deepwater locations in the world, with its rich resource base and shortest time to production of any deepwater location. This is highlighted by the U.S.’s successful lease sale in June that attracted $1.7 billion in winning bids.

Technological improvements, which have helped drive the resurgence in North American energy production, continue to benefit the industry, lowering overall costs and increasing efficiency. The promise and potential of enabling technologies should continue to drive energy industry Exploration & Production (E&P) and investment activity in the U.S. and around the globe.

Gary AdamsVice Chairman, U.S. Oil & GasDeloitte LLP

Source: IHS Herold

2

Industry overviewEconomic and energy pricing uncertainties contribute to a slowdown in deal activity

After finishing 2011 with a rush of activity, the energy industry M&A market settled back during the first half of 2012, with total industry deal count declining to 231 transactions compared to 256 in the first half of 2011. Total deal value fell slightly, from $108.6 billion during the first half of 2011 to $106.0 billion during the first half of 2012.

The European debt crisis continued to roil worldwide debt markets and led to a slowdown in European economies and persistent fears that weakness would spread to other parts of the globe, dampening energy demand. “The credit markets have been volatile this year due to financial turmoil in Europe,” notes Jason Spann, partner, Deloitte Tax LLP M&A Transaction Services. “This creates uncertainty that affects everyone who is looking to commit large amounts of money to M&A activity. Periods of high volatility in the credit and equity markets make it difficult to price deals, amid uncertainty.”

More directly, however, pricing weakness in the energy markets most likely affected the pace of deal activity.

Note: M&A activity examined in this report represents mergers and acquisitions involving oil and gas companies between the first quarter 2011 and the second quarter 2012 with values greater than $10 million, including transactions with no disclosures on reserves and/or production. Deloitte’s methodology takes a deeper look into the M&A transaction data. Our analysis has excluded several transactions between affiliated companies to provide a more accurate picture of M&A activity in the sector.

“World demand for oil and gas looks less robust than it did a year ago,” says Roger Ihne, principal, Deloitte Consulting LLP. “Projections for crude oil demand growth have moderated, production has grown in North America, and Saudi Arabia has increased oil production in response to the Iran embargo. With an increase in supply and a decrease in demand growth, crude prices have come down.” Oil prices remain strong enough, however, to maintain E&P and transaction activity. “With oil above $80 a barrel we are cautiously bullish on M&A activity and on the industry,” adds Ihne. “However, if oil prices fall much below that level we could see a significant retrenchment in a short period of time.”

A more pressing issue affecting North American E&P and deal activity has been the severe and prolonged weakness in U.S. natural gas prices. “In the U.S. we have experienced the euphoria around shale and the sudden abundant domestic supply of natural gas,” says Trevear Thomas, principal, Deloitte Consulting LLP. “But economics holds true: with increased supply and only steady demand, natural gas prices have declined.” Spann believes that

Oil & Gas M&A deals by value and count

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Asset value Corporate value Total deal count (RHS)

(In $ billions) (count)

Source: IHS Herold


the prolonged weakness in prices has started to change the dynamics of the deal market for companies heavily involved in North American natural gas. “Continued weakness is an issue for people who are deploying capital, and it is creating a shift toward different kinds of plays,” he says. “Certain oilfield service companies and pure-play natural gas E&P companies are particularly affected. We are seeing some companies challenged by low prices, causing them to pull back their activity.”

“World demand for oil and gas looks less robust than it did a year ago. With oil above $80 a barrel we are cautiously bullish on M&A activity and on the industry,”

– Roger Ihne Principal

Deloitte Consulting LLP

Weak U.S. natural gas prices also may be preventing buyers and sellers from coming together on asset valuations. “In M&A we are seeing some disparity in views about pricing,” notes Jim Dillavou, partner, Deloitte & Touche LLP Energy M&A Transaction Services. “When we have low natural gas prices that some people feel are out of line, buyers and sellers cannot get together. That may permeate beyond natural gas E&P companies, to the midstream and oilfield service businesses as well, because of concerns about a slow-down in domestic drilling activity.” Low prices also affect the valuation of creditors’ collateral, which creates uncertainty. “However, that situation can also create some transactions,” notes Dillavou. “We are starting to see some distress sales from companies feeling the pressure of low natural gas prices.” This trend may continue, believes Jed Shreve, principal, Deloitte Financial Advisory Services LLP. “Low natural gas prices will likely put pressure on pure natural gas players as hedges roll off and some companies cannot meet drilling commitments to hold acreage,” he says. “That may force some restructuring.”

Source: IHS Herold

4

Globally, natural gas prices remain strong, creating a large price advantage for big U.S. gas users such as the petrochemicals industry—and creating the potential for the U.S. to develop an LNG export business as well. “It is a whole different scenario outside the U.S.,” says Dillavou. “Gas demand globally is quite strong and large projects are taking place.” In the U.S., several companies' plans to construct liquefaction facilities to enable LNG exports are getting closer to a reality.“ Over the near term, with the spread over $10/mcf between U.S. and Asian natural gas prices, incentives are great for potential export,” says Thomas.

The low price of U.S. natural gas also is inevitably causing demand to rise, with positive long-term implications for the industry. Utilities are rapidly shifting from coal to natural gas. “Competition with gas prices is putting major pressure on the coal industry,” notes Thomas. “In addition, the regulatory environment for coal is not favorable right now. Coal mines are being shut and we will likely see some major restructuring in that energy segment on the horizon.”

While the coal industry is bearing the brunt of regulatory pressure, other energy industry segments face regulatory issues as well. In New York, Governor Cuomo issued recommendations for rules surrounding hydraulic fracturing for his state during the second quarter of 2012. “State governments are trying to get their arms around how to regulate the industry,” says Spann. The industry has made progress in its ability to educate the public about safety surrounding fracturing operations. For example, companies are increasingly disclosing the chemicals they use in the process via the website FracFocus.

Later this year, the election brings with it the potential for regulatory change, particularly in the area of tax reform. “This could have a large impact on future M&A activity, if changes are made in areas such as the carried interest rules,” says Spann. “One thing to watch in the second half of the year is whether investors start to anticipate tax reform. That might accelerate transaction activity in anticipation of any changes,” adds Shreve.

Source: IHS Herold


The total value of transactions in the E&P segment of the industry slowed significantly during the first half of 2012, reaching just $58.5 billion, down about 8% from $63.3 billion the first half of 2011, but falling 31% to $85.0 billion from the second half of 2011. Deal count was off slightly as well, with 167 transactions taking place in the first half of 2012, compared to 178 transactions in the first half of 2011, and 182 in the second half of 2011. The largest deal during the period was El Paso Corporation’s sale of EP Energy to a group of private equity investors for about $7.2 billion. El Paso had previously announced its intention to spin-off its E&P operations into a separate public company before its announced acquisition by Kinder Morgan during the second half of 2011.

Onshore, deal activity in the U.S. appears to be following the direction of production, shifting from dry gas to oil and liquids-rich plays. “We are seeing a fair amount of interest from foreign buyers in U.S. assets that are oil rich, such as the Eagle Ford and Bakken basins,” says Spann. “There has been a continuing move away from the dry gas regions such

Exploration & ProductionA slowing of dry gas activity, while the Gulf of Mexico picks up

as the Haynesville toward the oily shale plays. That is where the economies are now.” Ihne adds a note of caution. “We are seeing activity in many of the established oil and liquids plays, including the Bakken parts of the Eagle Ford, and other basins,” he says. “However, we do not know if we will see the same level of interest if the price of oil were to drop significantly.”

Looking ahead, North American deal activity will likely be influenced by the future direction of energy prices, particularly natural gas prices, where most producers are challenged to operate profitably at current depressed levels. “At these prices it is uneconomic for many of the dry gas players, but the companies are usually contractually obligated to drill to hold leases and maintain operations,” says Spann. “We would expect more assets to come onto market given the prolonged low level of gas prices.” Thomas agrees. “Producers originally did not build sustained depressed gas prices into their budgets,” he says. “Now many of them need to think about restructuring their portfolios, shifting from gas to tight oil and liquids

Exploration & Production M&A deals by value and count

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Asset value Corporate value Total deal count (RHS)


Source: IHS Herold

6

production and perhaps making acquisitions to maintain a sustainable portfolio.”

Canadian producers in particular are vulnerable to energy price weakness. “Canadian gas producers have to compete with low priced shale gas in the U.S. and are taking extraordinary measures to get their oil, particularly from the oil sands, to market,” says Ihne. “The quality differentials and cost of transport, including using rail cars to move product, are eating into their profits, and margins have declined. Much of this hopefully will be alleviated once transportation bottlenecks are resolved and prices recover.”Offshore activity overseas remained steady during the first half of 2012, with buying interest continuing in deepwater offshore plays. According to analysts and various news reports, ExxonMobil and Rosneft, Russia’s national oil company, announced a major joint venture during the second quarter of 2012, and plans to invest billions of dollars in development of Russia’s Arctic reserves. “We have also seen some deals from Japan, securing energy supply after the Fukushima incident, so there is plenty of international activity,” says Thomas. Dillavou agrees. “We are seeing activity off the coast of Africa, Australia and

Southeast Asia, as well as decent activity in Colombia and Brazil,” he says. “All those regions are seeing strong oil and gas activity, and M&A follows that.”

A notable change in the E&P segment compared to the first half of 2011 was the surge of activity in the Gulf of Mexico. Rig count in the Gulf has recovered to pre-Macondo levels. “In the Gulf, lots of projects were underway when the Macondo incident stopped all activity two years ago,” says Dillavou. “Those projects have now resumed and we are seeing a pickup in activity. Permitting is not an easy process now, but companies are confident that activity will continue and projects will get done.” An indicator of industry confidence in this area and of strong future activity was the successful $1.7 billion sale of Gulf of Mexico permits that took place on June 20. The three largest bidders in the sale were international integrated companies, with Norway’s Statoil the highest bidder. “That shows worldwide recognition that the Gulf of Mexico is still one of the best places in the world to invest,” notes Ihne. “This is clearly another bright spot in the U.S. for future activity.”

U.S. Rotary Rig Count in the U.S. Gulf of Mexico (average)

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(In $ billions)

Source: Baker Hughes

Source: IHS Herold


“Companies are seeking assets across resource types, to broaden their portfolios.”

– Trevear Thomas Principal


MidstreamConsolidation continues, as companies face the challenges of a new energy landscape

Consolidation continued in the midstream segment. Energy Transfer Partners L.P.’s acquisition of Sunoco for about $9.0 billion grabbed the headlines as the largest deal announced in the first half of 2012. A number of smaller transactions took place as well among midstream companies, with total deal value reaching $29.3 billion compared to $17.2 billion in the first half of 2011. “Once again, the largest energy industry transaction during the first half of 2012 came in the midstream segment,” says Ihne. “That comes on the heels of the activity during the second half of last year, when the largest deals were also in the midstream segment.”

The purchase of Sunoco, which owns both refining and midstream assets, by Energy Transfer Partners follows Kinder Morgan’s purchase of El Paso Corporation during the fourth quarter of 2011, another multi-billion dollar transaction. These large transactions and others may in turn create greater deal activity in the future, as some assets are divested after the mergers take place, for strategic or regulatory reasons. Shreve expects more activity in the midstream segment. “Publicly-held Master Limited Partnerships (MLPs) occupy a big portion of the midstream space, and they are beginning to consolidate,” he says. “We have seen corporate E&P companies selling assets to MLPs,

Midstream M&A deals by value and count

and that will likely continue as MLPs consolidate assets from private joint venture vehicles and major integrated companies.” Ihne sees a new landscape emerging within the industry segment. “We now have at least three tiers of midstream players: four or five very large companies, a second tier of midsized companies, and then a third tier where you have a lot of players in the $10 billion and under size,” he says. “Across that landscape, the big question is how much consolidation will eventually occur.”

Recent activity represents a kind of “rite of passage” for the midstream sector, according to Shreve. “During the

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Total deal count (RHS)Corporate value Asset value

(In $ millions) (count)

Source: IHS Herold

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‘70’s and ‘80’s this was an underutilized and fairly stagnant segment of the domestic energy industry,” he says. “With the advent of these large deals and the need for additional capacity, midstream has become a viable, stand-alone sector with a lot of growth potential. The market cap of the midstream segment has grown from $50 billion to $300 billion in recent years, and it is on the fast track to becoming a $1 trillion industry.”

The new geography of the domestic energy landscape is helping to drive midstream consolidation. “Because of shale findings, the needed infrastructure for serving the right production areas does not exist,” says Thomas. “To realize value, companies need scale to attract the capital necessary to build the infrastructure.” Ihne agrees, and believes that, along with scale, midstream companies are seeking diversification as they consolidate. “Companies are seeking assets across resource types, to broaden their portfolios,” he says. “It is a different world now, and companies need to build the right portfolio to serve geographically dispersed locations—it is a drastic change for the pipelines that create both opportunities and challenges.”

“Across that landscape, the big question is how much consolidation will eventually occur.”

– Roger Ihne Principal


Small (<$1B)

Medium ($1B-$5B)

Large (>$5B)

U.S. Midstream Companies (Distribution based on market capitalization)

Source: Bloomberg

Source: IHS Herold


Oilfield Equipment & ServicesWeak natural gas prices bring changes to U.S. rig count, lower deal activity

After a fairly active 2011, buyers and sellers in the oilfield services sector—particularly the larger industry participants—pulled back in the first half of 2012. Total deal count during the first six months of 2012 remained fairly flat compared to the deal count during the first six months of 2011, increasing to 34 deals compared to 30 deals the previous year. However, the total value of transactions dropped sharply, down 61% to $7.6 billion when compared to $19.4 billion during the first six months of 2011, and down 48% to $14.5 billion when compared to the second half of last year. “A number of deals took place right at the end of last year, but now we’re seeing a pullback in this segment, with U.S. rig counts flat to down, many players are moving from gas to oil, and excess capacity in certain areas,” says Spann.

One of the most significant changes in the underlying fundamentals for the North American oilfield services sector has been the dramatic shift in activity away from natural gas to oil production. For the first time in decades, the U.S. oil rig count surpassed the natural gas rig count during the second quarter of 2012. “People are moving

Oilfield Equipment & Services M&A deals by value and count

“A number of deals took place right at the end of last year, but now we’re seeing a pullback in this segment, with U.S. rig counts flat to down, many players moving from gas to oil, and excess capacity in certain areas,”

– Jason Spann Partner

Deloitte Tax LLP

rigs out of places like the Barnett and going after oil,” says Shreve. As of June 22, the Baker Hughes Rotary Rig Counts showed a 42% rise in oil rigs compared to the previous year. The steep jump in oil activity coincided with an equally sharp 38% drop in the natural gas rig Counts, so that overall the rig count remained static. This has created a more uncertain environment for investment activity.

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Source: IHS Herold

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"The level of services needed to support the producers is immense."

– Trevear Thomas Principal


Source: IHS Herold


The underlying shift in rig activity, steep drop in natural gas drilling, and pricing uncertainties may cause a slowdown in deal activity in the oilfield services sector. Pricing issues may also be contributing to the pause in activity. “Companies have been incredibly profitable in this sector, and rates are high,” says Dillavou. “Some buyers may feel that service company rates have peaked, and might be waiting for them to come back down.”

Despite pricing issues and the absence of the kind of major mergers and acquisitions that were prevalent among the larger oil services companies a few years ago, many smaller transactions continue to take place. “Companies continue

to look at strategic acquisitions to fill out their service lines,” says Dillavou. “Larger companies are looking for companies that serve specific geographies or offer niche services.” Shreve also is seeing many smaller deals take place, as well as experienced players leaving the larger companies to help start up private equity-backed ventures. “Shale is still a driver of activity in the U.S.,” he says. “There are lots of opportunities for entrepreneurial ventures in the revitalized North American industry. That will likely drive a good bit of oilfield services activity in the next couple of years.”

U.S. Oil Versus Gas Rig Count

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Crude oilNatural gas

Source: Baker Hughes

Source: IHS Herold

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Refining & MarketingSome activity overseas and interest from atypical buyers

Only nine Refining & Marketing (R&M) deals took place during the first half of 2012, compared to 12 transactions in the first half of 2011 and 13 during the second half of 2011. However, the total value of transactions picked up during this year’s first half to $10.6 billion, up 36%, when compared to $7.8 billion in the first half of 2011, and several orders of magnitude larger than the $2.6 billion during the second half of 2011. “We actually saw a good increase in deal value year over year in this segment,” says Ihne. “This was primarily driven by two large deals that took place outside the U.S., one in Asia and one in Europe.” “We have been near the bottom of activity for awhile now,” adds Spann. “People are quietly picking up assets here and there.”

One refinery acquisition during this period was notable not for its size but for the industry affiliation of the buyer. A major international airline announced in the second quarter of 2012 that it would buy a Trainer, Pennsylvania refinery for $180 million. The company intends to upgrade the refinery’s capabilities so that it can produce a much higher proportion of jet fuel, giving the airline a source of fuel in a region of the U.S. that has very little jet fuel production, as well as exchanges to allow jet fuel to be

Refining & Marketing M&A deals by value and count

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Source: IHS Herold


supplied throughout other geographic areas. “This is certainly a unique situation that has everyone intrigued both within and outside the industry,” says Ihne.

Ownership within the R&M segment of the energy industry has been transformed over the past decade as large integrated companies have “high-graded” their portfolios, selling or spinning off their downstream assets to focus on higher-performing upstream operations. Now, over two-thirds of the U.S. R&M operations are in the hands of independent rather than integrated companies. Many of these independent operators have benefitted over the past two years from rising profits in the U.S. due to advantaged priced crude supplies from Canada and the developing

tight oil plays in America, but long-term prospects are more uncertain. “Gasoline demand in the U.S. is down 5% compared to last year,” says Ihne. “Long term demand for refined products in the U.S. is still uncertain due to stricter CAFE (corporate average fuel economy) and renewable fuel standards, as well as future competition from natural gas-based transportation fuels.” However, reduced domestic consumption of gasoline and distillate fuels has largely been offset by exports of refined products from Gulf Coast refiners to Mexico, South America and Northern Europe. “Without export demand, U.S. refiners would likely be challenged to operate near the 85% plus capacity they reached this year, and could instead be facing increased rationalization of exiting capacity,” says Ihne.

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(In $ billions)

Net Exports of U.S. Petroleum Products ('000 bpd)

Source: U.S. DOE/EIA

Source: IHS Herold

14

The cloudy regulatory and competitive landscape creates an uncertain environment for many of the newly independent players in this segment. “Refiners now have varying degrees of balance sheet strength,” comments Thomas. “The question is whether that is sustainable long-term, or whether that situation will lead to consolidation.”

A crucial issue for refiners located along the Gulf Coast is whether the Keystone pipeline project will be allowed to

move forward. Many of the refineries in this region are designed to process heavy, high-sulfur crude oil. “Refining assets in the Gulf are some of the most sophisticated in the world,” says Ihne. “They can process heavy crude from Canada and the new tight oil supplied from various U.S. plays, but unless refiners gain access to that oil, we will have assets in the U.S. that have a comparative economic advantage to the rest of the world—but, nonetheless will have to rely on higher cost imported crude from elsewhere.”

Source: IHS Herold


SummaryIdentifying opportunities, preparing for the future

Energy price fluctuations present both near-term challenges and interesting opportunities for the oil and gas M&A market. As Gary Adams pointed out in his introductory remarks, current depressed North American natural gas prices—prices far below the market rates in other continents—will likely continue to attract both domestic and international supermajors that have money to spend on natural gas assets at low prices. The long-term outlook for U.S. natural gas holds promise, as gas gradually gains domestic market share, and as prospects for LNG exports from the U.S.—something almost unimaginable a few decades ago—improve.

Meanwhile, buying interest and E&P activity in liquids-rich shale plays continues, as does midstream consolidation and infrastructure investment, as that segment restructures and invests to serve the rapidly changing North American energy landscape. Offshore E&P activity also remains brisk, particularly in the Gulf of Mexico, where foreign bidders demonstrated their confidence in the outlook there during a successful lease sale in June. While oil and gas prices rise and fall, a resurgent North American energy market and the investment needs that accompany that resurgence should set the stage for sustained M&A activity over the longer term.

Source: IHS Herold

16

For more information, please contact a Deloitte Oil & Gas professional:

Gary AdamsDeloitte [email protected]+1 713 982 4160

Jed ShreveDeloitte Financial Advisory Services [email protected]+1 713 982 4393

Jim Dillavou Deloitte & Touche [email protected]+1 713 982 2137

Jason SpannDeloitte Tax [email protected]+1 713 982 4879

Roger Ihne Deloitte Consulting [email protected]+1 713 982 2339

Trevear ThomasDeloitte Consulting [email protected]+1 713 982 4761

For more information about the Deloitte Oil & Gas Group and the Deloitte Center for Energy Solutions, visit us at www.deloitte.com/energysolutions.


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Deloitte Center for Energy SolutionsTo receive any of these papers and view all of our new thought leadership, visit www.deloitte.com/energysolutions.

Current thought leadership (continued)


About the Deloitte Center for Energy SolutionsThe Deloitte Center for Energy Solutions provides a forum for innovation, thought leadership, groundbreaking research, and industry collaboration to help companies solve the most complex energy challenges.

Through the Center, Deloitte’s Energy & Resources Group leads the debate on critical topics on the minds of executives—from the impact of legislative and regulatory policy, to operational efficiency, to sustainable and profitable growth. We provide comprehensive solutions through a global network of specialists and thought leaders.

With locations in Houston and Washington, D.C., the Deloitte Center for Energy Solutions offers interaction through seminars, roundtables and other forms of engagement, where established and growing companies can come together to learn, discuss and debate.

www.deloitte.com/energysolutions

Center for Energy Solutions

This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

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