Strategy and Deal Origination

Sample Assignment: Power (SK E&C)

Sample Assignment: Power (SK E&C)

Background: SK E&C hired Orchid to lead commercial and legal due diligence on the potential acquisition of 100% membership interests in two greenfield combined cycle power plants in ERCOT.

Orchid's Role:

  • Investigated the project, development status, and management team track record
  • Performed documentary due diligence of project contracts (land, EPC, water, permits/licenses, interconnection/transmission), joint development
  • Reviewed tax and corporate records, consents, resolutions, sources and uses of funds, investment documents
  • Provided an overview of the US power market and ERCOT zonal and nodal markets, revenue hedging options, financial model
  • Provided an overview of the US natural gas market with emphasis on supply for project
  • Reviewed the project gas sourcing plan and provided feedback on options to procure gas
  • Reviewed the power marketing plan and provided input on hedging and power sales options

Orchid's Deliverables:

  • Feasibility report on development company and project, contracts and agreements, investigation of management team, permits/licenses status, site control, environmental/geotechnical, corporate records, use of investment funds
  • Analysis of power market and sales, hedging options, interconnects/transmission, energy management