Energy

Oil/Gas Merger Arbitrage  

(International)

Investment Issue: In assessing the likelihood of a merger between Chinese and Canadian oil companies, our client needed to handicap whether regulatory approvals by governments in Nigeria and Iraqi Kurdistan would be forthcoming.

Public Insight's Solution: Within 24 hours of the client’s request, Public Insight facilitated consultations with the leading Nigerian oil/gas M&A attorney, based in Lagos, and a noted authority on Iraq who regularly speaks with key officials in the Kurdistan Regional Government. These analysts provided fresh insights into the local antitrust review processes in Nigeria and Kurdistan. Following the consultations, the Iraq-specializing Public Insight Analyst Network member was able to follow up directly on the matter with the Iraqi Foreign Minister, and share additional insights with our client.  

Investment Outcome: The client traded successfully in this merger arbitrage opportunity, due in part to the accurate and timely regulatory assessments provided by Public Insight’s Analyst Network members. 

Energy/Tax Policy: Alternative Energy Tax Credits

(Federal)

Investment Issue: A private equity client analyzing a potential alternative energy investment needed a quick understanding of federal research and development tax credits and subsidies that might be available for a certain kind of energy production.

Public Insight's Solution: Within 24 hours, our client was on the phone with a top Washington energy lobbyist who was able to answer all pertinent questions and efficiently analyze and explain federal guidelines that our client would have otherwise spent hours reviewing.

Investment Outcome: Understanding the available tax credits let our client make a more informed analysis of future earnings projections.

Energy/Tax Policy: Natural Gas Tax Proposal

(State/Local)

Investment Issue: A hedge fund client with significant exposure in the Pennsylvania energy sector needed to learn about players, politics, timing and possible outcomes of a proposed natural gas tax in that state.

Public Insight's Solution: Public Insight connected our client to various members of our Pennsylvania Analyst Networks, including one who served recently as Chairman of the Pennsylvania Public Utilities who tracks closely all such state-level energy policy developments.

Investment Outcome: The client, in real-time and cost-effectively, was able to assess both the likelihood and timing of the proposed natural gas tax, and shift their weighting in relevant positions accordingly. 

Energy: Off-Shore Oil Drilling Approval

(State/Local)

Investment Issue: A hedge fund client wanted to forecast whether the California legislature would approve a major off-shore oil drilling project in the latest version of the state budget.

Public Insight's Solution: Even as legislators were engaged in last-minute debates over budget items, Public Insight quickly facilitated consultations with an Analyst Network member, the former Senior Policy Advisor to the Governor of California, who offered accurate and up-to-the-minute insights and useful forecasting on the oil drilling measure.

Investment Outcome: Based on Public Insight analysis, the client decided to proceed with the trade they were evaluating, generating significant alpha.