When Que Advisors provides analytic services, we bring insights gleaned from decades of management and operations experience; relationships with financial services firms; hands-on operation and management knowledge; and energy industry experience.
Many firms can plug numbers into a software tool and deliver results. But do those numbers make sense? Will they hold up in light of changing market design or during periods of substantive regulatory change? Building on our foundation of industry knowledge, we suggest that our business insights have potential to effectively add value and increase your prospects for success.
- EBITDA and free cash flow projections
- Company and asset focus
Mark-to-market and contract evaluations
- Commodity contracts and instruments
- Service agreements such as AMAs, EMAs, PPAs, and PGAs
Que Advisors utilizes a variety of market analysis models ranging from basic stack assessment tools to more realistic time series approaches including zonal commitment and dispatch models and nodal models. We utilize extensive power plant and hydrocarbon databases to arrive at a reasonable representation of the opportunities and risks that a decision-maker faces.
Often assessments do not explicitly consider an extended set of alternatives or scenarios. These can include low or high fuel prices, business cycles, exchange rates, terminal values after agreement expiration, and alternative demand growth possibilities, scarcity price alternatives, and changes to bilateral contracts.
Our evaluation tools facilitate robust supply and demand analyses. They can also allow bounding of extrinsic and intrinsic values based on factors such as changes in project start dates, alternative transportation strategies, and value of expansion options. While some firms focus solely on a modeled forecast view of future prices, we can also consider the values to be obtained by hedging in forward markets, and the value of dynamic portfolio optimization based on the firm’s attitude towards risk.