Aligning Diverse Portfolios and Execution for Capital Efficiency

Aligning a diverse portfolio with an organization’s execution capabilities and capacity is imperative in achieving capital efficiency and meeting shareholder expectations. Constructing a portfolio that provides both cash flow and long-term growth is a challenge. There should also be a direct connection of the organization’s strategy with its investment proposition. Should companies mitigate risk by diversification across countries, asset types, or play types? Or, alternatively, should they be a focused “pure-play” organization, leaving the investment diversification to the investors themselves?

Industry Trends

As complicated as the oil and gas business may seem at times, at its core it is quite simple.