Your client is an energy company that has both an upstream and downstream business. Their upstream business consists of exploration and production while their downstream business includes refining and marketing & distribution. They receive 20% of their revenue and 90% of their profits from the upstream side, 80% of their revenue and 10% of their profits from the downstream side. This is the first meeting you’ve had with them and the focus is on getting the engagement. Keys – Why does upstream, with a small portion of revenues, generate nearly all the profits? Upstream and downstream business run as separate entities and enjoy no special advantages through their relationship.