Once the deal is closed, the real work begins. "There must be value creation throughout the process," says Sunil Deshmuk, vice president, Constellation Energy Commodities Group (CCG). "When you close the deal, only 25% of the work is done. The best way we've found to ensure we stick with a deal is to be married to it from the beginning to the end of the life-cycle of the properties we acquire." Constellation derives additional value from the properties it acquires by investing alongside partners in a specific asset; then, it looks to grow relationships with those partners. The firm also avoids putting its deals into a "financial straitjacket." "As long as you're adding value, capital is flexible," Deshmuk said at the recent A&D Strategies and Opportunities conference in Dallas, sponsored by Oil and Gas Investor and A&D Watch newsletter. CCG has deployed more than $500 million in capital in nine transactions, giving the company a strong base for growth, Deshmuk said. CCG looks to be flexible in its transactions, structuring them to be responsive to clients' needs and making investments across the E&P life-cycle. It also provides stable capital and value-enhancing resources, such as technical support from its team of petroleum engineers, geologists and landmen. For more on this, see the November issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

Comments