L1 Energy aims to do this through acquiring and then developing a portfolio of several regionally focused platforms, and by entering the rapidly evolving markets for alternative energy and energy infrastructure. We invest for the long term, bringing strategic expertise, capital and rigorous performance management to a portfolio of regionally focused platforms. Our activity aims to create value both for shareholders and for the rest of society through the provision of safe and reliable energy.
DEA delivered strong financial and operational performance in 2016.
Lord Browne of MadingleyExecutive Chairman of L1 Energy
L1 Energy is making good progress towards achieving its ambition to build a safe, sustainably growing global energy group. Its first acquisition was the German oil and gas company DEA, from RWE AG in March 2015. This acquisition gave L1 Energy its first growth platform in Europe and North Africa.
Building a growth platform in Europe and North Africa
Drawing on its world-class expertise, L1 Energy has been working with DEA to refocus it on its core competencies; to rebalance its portfolio based on value and growth prospects; to optimise its business model for a low oil price market; and to accelerate its growth by making capital available for selective business development.
DEA is concentrating on five core countries: Norway, Germany, Denmark, Egypt and Algeria. Non-core positions around the world continue to be divested or discontinued with strict limits to spending on exploration. DEA is also ‘incubating’ in new geographies, including Mexico and Brazil, where L1 Energy believes that the company can create long-term value.
In 2016, DEA delivered strong financial and operational performance, leading to an increase in the value of the business of 20%.
Acquiring a second platform for growth
L1 Energy continues to look for opportunities to unlock value in other markets by acquiring a second regional platform. We will act as a patient investor, creating value for our shareholders and for society as the world around us changes.
In order to support our growth ambitions, Scott Sheffield was appointed to L1 Energy’s Advisory Board on 1 January 2017. Scott was Chief Executive Officer of Pioneer Natural Resources from 1997 through the end of 2016. During his 35 years with Pioneer and its predecessor companies, he has overseen the transformation of a small independent into one of the world’s most valuable shale players worth approximately USD $30 bn.