Our Approach

Firstly, we really are independent.  We do not underwrite securities, we are not proprietary traders, we do not manage assets and we do not write sell-side research. 

Richmond Energy Partners provide investors with an oil company professional's view on value.  For smaller oil companies we  look at acquisitions with an understanding of what financial investors are looking for.  

To understand smaller oil and gas companies you have to get down to the rocks.  Our approach is based on a knowledge pyramid built out of the essential components of informed oil and gas investment decisions. Our evaluations are founded on a sound understanding of the geology and politics of the region where the company is operating together with a thorough evaluation of the asset portfolio in terms of value and risk.  We then look at the capacity of management team to add value to the assets based on their knowledge and experience, access to finance and access to rigs and technology etc. 

We do sometimes meet with the management of the companies we value but not always.  We try to stay outside as much as possible to ensure objective and honest assessments.  We rely on company presentations and reports together with our extensive internal knowledge base and network of industry experts. 

Now here comes the tricky bit.  How do we value small oil companies?  Firstly we do not give buy/sell recommendations or set price targets.  We leave that to our clients to decide. 

Our guiding principle is that a company is worth what someone is willing to pay for it.  The only time you really know what a company is worth is when someone buys it.  We therefore maintain a database of analogue transactions as a guide to valuation.  Sometimes this value is more than what the market is willing to pay and often it is less .

When analogues are not available we use traditional methods such as DCF modelling to calculate NAV.   For exploration companies we are wary of using EMV as a valuation guide and prefer to use what other oil companies would pay to access an exploration opportunity as an alternative.

One thing our clients can be certain of is that our approach is honest, thoroughly researched and founded on many years of experience.  Our integrity is the asset that we value the most.