When it comes to acquisitions and the art of the deal, oil & gas and the software industry have shared goals. We want the technology we acquire or the wells we buy to be accretive to our growth objectives. I'm proud of PakEnergy's most recent acquisition of Petrosight, an innovative, well-life cycle management platform that complements Pak Production in numerous beneficial ways and brings extra layers of value, visibility, and control to our customers. Petrosight follows on the heels of other strategic acquisitions that were similarly accretive to our vision. Key to our success is accelerating the alignment between buyer and seller and seamlessly integrating people, systems, and data in order to avoid the organizational fragmentation that stifles innovation.
Likewise, deal flow in oil & gas reflects the search for assets that are accretive to an operator's vision. The Permian, Bakken, and DJ Basin showcase how the appetite for prime acreage has led mid-caps to acquire small producers, who in turn were acquired by majors and then the supermajors, leaving a relative handful of operators in these areas. Yet ample opportunities still exist as supermajors divest non-core assets, drilling activity remains active all over Texas, and natural gas pure plays are poised for growth as LNG facilities on the Gulf Coast are activated this year. Additionally, the significant return of private equity is expected to drive the next wave of energy startups, which will broaden the mergers and acquisitions (M&A) landscape even as consolidation persists.
As NAPE approaches, the industry's premier event for oil & gas prospect sellers and deal makers, I'd like to share a few thoughts on how PakEnergy can help your team close deals with less friction and higher margins.>/
I'd argue that the energy software ecosystem is the most diverse out of all the industrial sectors, comprising many strains of accounting, production, and land software built at varying times resulting in an inflated and often complex technology stack with different vintages of technology. An operator who implements such solutions over time often spends vast amounts of resources integrating and getting by with various workarounds to their software ecosystem’s limitations. Reducing the tech stack is an additional way companies are looking to get the most out of their M&A deals. M&A only adds fuel to the fire as the buyer attempts to integrate one fragmented ecosystem with a completely different one. Synergy - the prize of a deal - remains elusive.
With more than 2,300 energy customers, PakEnergy is creating a network effect that is solving M&A integration chaos. As more and more energy companies continue to choose our platform, the network effect intensifies, creating exponential opportunity on both sides of a transaction where data is simply cross-loaded after a TSA (Transition Service Agreement) is signed. Seamless, rapid, effective integration. Of course, PakEnergy is well known for our intuitive and robust importing tools, so even where data must be converted from the seller to the buyer, we lead the industry in speed and efficiency. All of which accelerates the time to synergy, reducing TSA costs along the way.
Having achieved swift asset integration and alignment, maximizing deal value also requires operators to efficiently manage acquired assets, contain lease operating expenses (LOE), and continuously optimize asset performance. Together, our land, production, accounting, and document management products provide operators with an intuitive platform on which to run their business.
Oil and gas companies that run their operations on PakEnergy's upstream platform are empowered with intuitive user interfaces and seamless data flow. This enables them to scale their well count without scaling headcount, gain real-time financial clarity, and mitigate risks in the field and back office. For operators with an acquisition and divestiture growth strategy, our easy-to-use systems offer a complete solution to onboard, manage, enhance, and divest assets at the best price.
Perhaps most importantly, PakEnergy is staffed by a deep bench of energy professionals, including landmen, petroleum engineers, operations specialists, production accountants, and logistics experts. Combined with a technology team of software engineers, data managers, and customer success specialists, PakEnergy is uniquely positioned to design and deploy cutting-edge technology solutions—for energy professionals by energy professionals.
With decades of experience since 1986 and strong roots in oil-producing regions, our energy expertise enables us to support deals from start to finish in critical ways others cannot. Beyond the results-driven advantages of our upstream software solutions, customers gain added confidence knowing that a merger or bolt-on acquisition is secured and backed by a technology partner with a deep understanding of the oil & gas business and the critical needs of a deal. This includes supporting pre-acquisition due diligence, asset onboarding, and day-to-day operations. You simply won't find this level of oil & gas expertise or breadth of capabilities and offerings anywhere else.
Planning on attending NAPE next week in Houston? Stop by Booth #2525 to meet with me and our PakEnergy industry experts. Let us show you how The Pak can help your team acquire, manage, or divest assets with speed and efficiency. Be sure to ask about Petrosight, our most recent acquisition. We look forward to meeting you!