What steps should investors seeking opportunities in the energy sector take to conduct due diligence?

RK: It’s imperative that anyone looking to make a significant investment in today’s energy sector has a painstaking command of a target’s revenue, liquidity position and balance sheet. This includes testing the asset values and capital needs of the target and verifying all liabilities and security therefore.

Some oil companies operate strictly within a state, while others are regional or national players. What are some considerations to avoid running afoul of federal, state and local laws?

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