ENERGY, POWER & INFRASTRUCTURE

The fluctuations in energy commodity prices over the last five years have been likened by some to parallel a survey of Charles Dickens novels.

Bleak House (2015-2017). As oil fell to below $40 a barrel, a panoply of bankruptcies roiled the sector.

Great Expectations (2018). A sense of optimism as crude prices began a slow 12-month recovery to reach over $70/barrel by October 2018.

A Tale of Two Cities (late 2018 – present). Prices have remained in a fairly tight range between $50 and $65/barrel. Investors are now viewing the current pricing landscape as the New Normal. The companies that are operating efficiently in the right basins and not spending in excess of their operating cash flow are surviving. Those still hoping for a higher price environment find themselves in serious need of restructuring solutions.

The oil and gas price environment also has impacted the power sector, where power prices are directly correlated with natural gas prices. The downturn has affected power generation assets (especially renewables such as biomass) as well as the coal mining sector, which is in the midst of a significant downturn.

SCP’s team of energy sector professionals have real time expertise they bring to each client engagement and respond quickly and act dependably to find solutions to liquidity, financial, operational and restructuring issues experienced by their clients.

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