Concluding Thoughts
There is much due diligence that must be completed in the process of evaluating any potential energy investment. Of additional consideration is the role of government loans, guarantees, or other subsidies that often play a role in energy infrastructure projects. Foremost is the ability to generate cash flow amid sustainable earnings and show a growing revenue base.
Cost structures vary widely across the energy value chain. The liquidity, cash flow, and leverage metrics are meant to provide a basic foundation upon which to build in pursuit of additional, deeper analysis. This complex sector has a myriad of factors all critical in understanding an investment opportunity. Whether it is as passive as buying equity or investing ...
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