Expertise|Energy

Overview

Stax leverages extensive expertise in energy and related industries to deliver targeted strategies for clients across a range of issues. This ranges from traditional energy products and services related to coal plants, utilities, fleet operations, and oil and gas infrastructure, to transformative new technologies related to alternative energies and water. Our experience includes multiple engagements focused on both upstream and downstream trends. Engagements run from strategic positioning and acquisitions to incremental profit improvement and tactical assistance.

Several of Stax’s leaders are recognized as thought leaders in the energy field and are regularly invited to speak on topics such as energy independence and energy investment.

Types of Engagements

Energy companies and those focused on this industry regularly engage Stax to analyze and help grow their businesses, and to help assess various investment opportunities. Engagements include:

  • Helping corporations and private equity firms conduct due diligence on potential investment opportunities.
  • Assessing markets, customers, segments, channels, and competition to identify and prioritize opportunities.
  • Determining profitability by segment and by customer, along with identifying and prioritizing opportunities to improve profitability.
  • Finding opportunities for organic and inorganic growth, and joint ventures.
  • Discovering unmet needs, untapped pockets of opportunity, and areas for focused innovation.
  • Conducting multi-country market analysis to prioritize best geographic opportunities.
  • Analyzing markets and sales force deployment and making recommendations to optimize the allocation of resources.
  • Developing go-to-market strategies for specific sectors.
  • Identifying opportunities to leverage new technologies to increase efficiency and profitability.

Areas of Expertise

Traditional and Alternative Energy

  • Traditional Fuels (coal, natural gas, nuclear, oil)
  • Alternative Energy & Fuels
  • Renewables (wind, solar, bio-fuels)

Energy Infrastructure

  • Equipment Manufacturers
  • Power Generation and Distribution
  • Utilities

Energy-Related Services and Service Providers

  • Field Services
  • Staffing
  • Service Providers
  • Environmental Design (LEED)

Technology

  • Operations Software
  • Technology Providers

Water

  • Irrigation and Water Management

Examples of Engagements

  • Due Diligence in the Oil & Gas Service Industry. In an engagement for a private equity firm, Stax found positive growth prospects for a provider of fluid heating and transportation equipment in the oil and gas industry. Stax evaluated growth opportunities in the fluid heating market and provided insights on market sizing, competitive dynamics, and positioning. Stax found that the target company was strongly positioned as the value player in the market and was well regarded for its reliable, competitively priced equipment. Stax also identified opportunities for the target to increases prices. Stax built out a fact base through primary fieldwork, consisting of interviews throughout the value chain. These interviews were also supplemented by secondary research. As a result of Stax analysis, the PE firm proceeded to acquire this company.

  • In–Depth Market Assessment of Canadian Oil Sands Outlook. Following an in-depth market assessment and recommendation by Stax, a leading global energy company proceeded to acquire a manufacturer and supplier of products serving the Canadian oil sands mining and oil and gas markets. Stax’s recommendations were based on analysis of the general growth outlook for the oil sands production industry as well as the specific opportunities for the target company. Stax evaluated this target to determine quality of its product offering, customer stability, product lifecycle, and risk of substitution from similar or replacement products. Stax interviewed oil field service companies, mine operators, and distributors, as well as competitors, and supplemented these interviews with select government agency and industry expert conversations. Stax’s approach also included a broad analysis of secondary research on market trends and drivers.

  • Strategy Development for a Drilling Equipment Company. Stax provided a strategic roadmap for a corporate client seeking to reposition its drilling equipment offering in the oil drilling fluid market. Stax’s recommendation included a two-pronged marketing approach to increase sales: an operator “pull” strategy and partnerships with drilling fluid companies that would provide access to new operators. Stax evaluated competitive technologies, sales and substitution risks in target markets, and the impact of environmental drivers on sales. In addition, we assessed the market size and growth trends for oil drilling fluid technologies, as well as geographic regions. In building the fact base for this engagement, Stax relied on primary fieldwork among end users, such as oil drilling operators and consultants, as well as drilling fluid companies.

  • Investment Due Diligence and Recommendations. After conducting in-depth due diligence, Stax cautioned a client considering an investment in a company that develops various applications for the energy industry. Stax’s analysis indicated that this potential investment had limited growth potential. Stax reached this conclusion after assessing the competitive landscape, mapping adoption of third-party software and customer buying patterns in the energy space, and evaluating the vendor selection process. After listening to Stax’s findings, the client decided not to proceed with this investment and looked elsewhere for investment opportunities in the space.

SEE MORE CASE STUDIES

With nearly two decades of experience in the energy sector—including traditional energy and transformative companies in new types of energy businesses—and across various sub-sectors and geographies, Stax knows this space well. We conduct high-level strategic assessments and deep granular analysis to help clients drive growth and profitability, and help investors make fully informed investment decisions.

To discuss how Stax can assist you contact Mark Bremer at mbremer@stax.com.

Back to top

Source URL: http://www.stax.com/industries/energy/