The Challenge

A client needed to evaluate an investment opportunity pertaining to a grassroots refining/petrochemical facility and sought assistance in figuring out whether the deal would be a long-term winner.

The Solution

Stratas Advisors developed forward-looking industry scenarios pertaining to supply and demand, pricing and margins. We then assessed the proposed facility's competitive position, taking into account relative scale, complexity, feedstock costs, the product slate and associated inbound and outbound logistical infrastructure.

Based on this framework, we developed the financial and operating model for the proposed assets. We identified and assessed the impact of modifications to the asset configuration, and evaluated the value of those assets within the context of the different industry scenarios.

The Results

Our recommendations allowed the client's investment committee to weigh the project's pros and cons in a robust and timely manner. With a clear understanding of the potential upsides and downsides of the property, they were able to influence the project's direction for the better.