Stellar Energy Advisors, the leading international oil & gas portfolio advisors, join the Frontier Energy Network

24th March 2021

Stellar Energy Advisors, the leading international oil & gas portfolio advisors, join the Frontier Energy Network.

Frontier is extremely pleased to announce that Stellar Energy Advisors, the leading international oil & gas portfolio advisors, has joined the Frontier Energy Network as Corporate Members. We welcome the opportunity to continue the close, ongoing partnership with Stellar, a company that shares Frontier's vision for a more connected and engaged energy sector for the future.

We invited Thomas Perkins, Director at Stellar to share with us Stellar's thoughts on the current state of the upstream A&D market and he tells us there is cause for optimism. 

Tom, can you tell us a bit about Stellar?

Stellar Energy Advisors is an independent advisor to upstream clients for acquisition and divestment (A&D) services. With an established track record of completing >85 upstream A&D transactions over the course of the past twenty years, Stellar brings a wealth of knowledge and experience to the table that it can deploy for any upstream A&D mandate. 

How has Stellar evolved from it's origins?

Having initially started out as a UK North Sea advisory firm, Stellar quickly expanded its reach to the international E&P arena where the company has had an abundance of success in various regions including Africa, Latin America, the Middle East and the Far East. Stellar’s team of seasoned upstream professionals have experience across the upstream E&P value chain having transacted multiple deals for production, development and exploration assets.

It has been a challenging year. What is Stellar seeing in the current Upstream A&D Market? 

Yes, 2020 was a challenging year for the industry, and the M&A/A&D market was no exception. Throughout Stellar’s key regions (Africa, Asia Pacific, Europe, Latin America and the Middle East) there was a considerable decline in 2020 for both the number of transactions and the value of transactions compared to the period average of 2016-2019. Deal count was down 39% between these two time periods, while deal value really laboured with 2020 closing out at a staggering 70% below the previous four year average.

Despite these recent challenges there are signs for optimism, and this is being borne out in the market throughout the early stages of 2021. This year has already seen nearly $8 billion worth of transactions in Stellar’s key regions (named above), with notable multi-hundred million dollar transactions taking place in countries such as Nigeria, Egypt and the UK. There is a clear preference and bias towards cash generating assets with >60% of transactions announced so far this year pertaining to production assets. Furthermore, almost all of the announced transaction value is attributable to producing assets, further highlighting the types of assets that available capital is targeting. Based on these market trends, as well as the extensive market research Stellar has conducted through meetings with >100 E&P companies over the past 9 months, we fully expect the upstream A&D market to continue in this fashion and for production assets to be the central focus of A&D activity. Deal activity for assets lower down the value chain (development and exploration) will be challenging and deal flow will be sporadic outside of a few select regional hotspots, for example Guyana-Suriname, Mexico and the Eastern Mediterranean.

Tom, it is a pleasure to welcome Stellar as a Corporate Member to the Network. 

Stellar is delighted to join the Frontier Energy Network as a Corporate Member having been a valuable contributor and sponsor to previous events. Frontier provides a professional and well organised platform for industry engagement and one that Stellar finds invaluable for its continuous business activities. We look forward to continuing our relationship with Frontier and the wider E&P community.

How can interested parties reach you?

Should your company wish to discuss any aspect of the upstream E&P industry, or find out more about how Stellar may be able to provide A&D support, please do not hesitate to contact us. Further information on Stellar can be found at stellarlimited.com, or alternatively please reach out to me directly Tom Perkins (tomperkins@stellarlimited.com).

Thank you Tom, we can't wait to hear from you this week at our first Frontier Energy Network Members Briefing and on the Program of the upcoming Africa E&P Summit from the 22nd to 23rd September in London with Stellar as Sponsors!