The scale of today’s oil and gas, utilities and mining organizations dwarfs that of many other industries. The size and scale of the industry will continue to grow to meet the world’s ever-increasing demand for energy. Today’s demand of 200+ million barrels of oil equivalent per day is predicted to double by 2050. To feed the world’s increasing demand for affordable and reliable access energy sources requires greater capital, larger workforces, better technology, and effective risk management. While sustaining growth, energy companies must also maintain the highest standards of environmental stewardship. While commodity prices are high, publicly traded energy companies are also contemplating the best cash management strategies.
Fifteen percent (15%) of the companies that comprise the Global Fortune 500 today are extractive or power entities. Ongoing consolidation across the industry is resulting in larger, more complex organizations with globally expanding operations and greater challenges. In addition to these public and private companies, there are large, government-owned energy organizations (NOCs) that have begun to expand beyond their national boundaries to compete for resources and end markets. Managing these global operations, across borders and product lines, involves carefully balancing enterprise risks with financial goals.
How PwC can help you
PwC has a broad spectrum of capabilities to support companies’ efforts to manage the growth that will be necessary to meet the ever-increasing energy demand. Whether a company is considering a transaction, joint venture agreement, production sharing agreement, or organic expansion, our energy professionals have the experience and deep industry understanding to deliver value and contribute to your success.
Growth through transactions
Services for buyers – We help acquirers evaluate targets, improve their M&A process and set post-close priorities. After a deal closes, we counsel a company on improving the internal controls governing a target's financial, IT, back office, supply chain and customer management systems and processes.
Services for sellers – We help clients identify and resolve carve-out issues, assess the quality of earnings, determine the impact of transition/removal issues, assist in the coordination and structure of the data room, and advise on the purchase agreement.
Structuring services – Our structuring specialists advise companies on how to ensure that the financial structures employed in a transaction comply with applicable financial accounting standards. We also help clients understand the impact of income tax, financial market, corporate governance, rating agency or regulatory concerns on the proposed treatment of a transaction.
Tax and sustainable business solutions – Our tax and sustainable business specialists play a significant role in advising companies about structuring transactions from a tax perspective, building a cohesive global tax structure for a transformed enterprise, and understanding the environmental and reputation risks inherent in a strategic acquisition or merger before a decision is taken.
Post transaction services – We have post transaction specialists who can assist you in areas of systems and process integration, human resources, and ways to achieve additional synergies from a completed transaction.
Tax strategies
Drawing on local, national, and worldwide resources, our Energy tax professionals solve challenging issues, anticipate changes that can impact our clients’ tax situation and financial statements, and keep them apprised of local, state, foreign and international tax regulations as they pertain to the company’s operations. Our strong international network of over 19,000 dedicated tax specialists in 148 countries means that we can support you both locally and globally, wherever you require tax advice. Some of our value-driven tax services for Energy companies include:
- International tax structuring
- M&A tax planning
- Transfer pricing
- Tax compliance
- Indirect tax planning and compliance
- Tax process review
- Domestic tax planning
