The Energy Capital Conference 2013 Show Report - Hart Energy

Report 31 Downloads 198 Views
The Energy Capital Conference 2013 Show Report

Consolidation is coming, and plenty of capital is available to make deals. However, succession planning for surviving companies needs to take into account their appropriate strategy, not just personalities, according to speakers at Oil and Gas Investor’s annual Energy Capital Conference, held in Houston in mid-June. The event focused on industry trends and boardroom issues common to all upstream corporations, big and small. Further consolidation among E&P companies is going to happen, panelists agreed. “It’s going to be a major part of our business for the next five to 10 years,” said R. Danny Campbell, president of Henry Resources LLC, Midland. All major basins should see some consolidations; speakers were keen to focus on the Permian, where well-capitalized majors (who largely left in the 1980s), have plenty of cash on hand today and are willing to pay to get back into the booming basin. Whatever the basin or play, likely acquisition targets will be companies that are cashconstrained but asset-rich. The buyers, meanwhile, will be well-financed companies in search of resource plays. “They are all fascinated by these resource plays,” said H. Craig Clark, president and chief executive of Wishbone Energy Partners LLC, a new private-equity-backed startup looking for assets. And when deals are found, larger amounts of capital will be needed to develop the plays – a dynamic of the acquisitions and divestiture market that has changed in the past 12 to 18 months. “The ability to take a 10,000-acre piece of property, drill five to 10 wells and sell a bunch of undrilled locations has disappeared,” said Doug Swanson, a partner at EnCap Investments LP. Today, properties have to be more developed and need more production data and top-tier economics.

1

But that fact isn’t slowing investing, and a prime example of this can be seen in private equity, which has fast become a big player. Swanson said he’s seen reports of $28 billion in energyfocused private equity funds currently in the market, available to finance E&P companies. Attendees at this year’s conference, meanwhile, also got a glimpse of what some industry executives think. According to the results of the 11th Survey of Upstream U.S. Energy Companies commissioned by Grant Thornton in partnership with Hart Energy, and shared with the audience at the conference, industry leaders worry that natural gas and crude oil prices in 2013 and years to come are stuck in a rut or will fall. “The number one concern is price uncertainty,” said Brandon Sear, National Energy Practice Leader, Grant Thornton. The survey of E&P, midstream and oilfield services executives found respondents do not think average gas prices of $4 per thousand cubic feet of gas (Mcf) will solidify until 2015. Whether those speculations come to pass remains to be seen. What we at Hart Energy do know and can predict is that whatever comes next in this fast-evolving industry, it will be interesting, and it will be part of the wide range of discussions we have again at next year’s Energy Capital Conference. We hope you’ll join us then to be a part of it. See you then!

Leslie Haines Editor-in-Chief Oil and Gas Investor Hart Energy

2

Did you learn from these informative speakers? Rick Louden Co-CEO and President Argent Energy Trust

Carin Barth Corporate Director Bill Barrett Corp. and Western Refining

Michael R. Starzer President & CEO Bonanza Creek Energy Inc.

Dudley Viles President & CEO Bright Horizon Resources

Scott L. Joyce Senior Vice President Capital One Energy Banking

Jordan Marye Managing Director Denham Capital

John Donovan Founder Donovan Capital

Steve Antry Chairman & CEO Eagle Energy of Oklahoma

Stephen C. Beasley Founder and CEO Eaton Group Inc.

Suzanne Paquin Nimocks Corporate Director EnCana, ArcelorMittal, Rowan & Owens Corning Brandon B. Cradeur Managing Director Grant Thornton LLP

Doug E. Swanson Partner EnCap Investments LP

Robert Watson Jr. CEO EnerJex Resources Inc.

R. Danny Campbell President Henry Resources LLC

Mark Ellis Chairman, President & CEO Linn Energy LLC

Brian N. Thomas Managing Director Prudential Capital Group

Eric Nielsen Managing Director Quantum Energy Partners

Sylvia Barnes Managing Director and Head KeyBanc Capital Markets John Wing Entrepreneur Serial Entrepreneur

Mitch Kniffin Vice President Sigma3 Integrated Reservoir Solutions Inc.

Alan R. Huffman Ph.D. Chief Technology Officer Sigma3 Integrated Reservoir Solutions Inc.

Eric Alfuth CFO Starboard Resources Inc.

Mike Oestmann CEO Tall City Exploration LLC

Tim Duncan President & CEO Talos Energy LLC

David Pursell Managing Director, Head of Securities Tudor, Pickering, Holt & Co.

Matt Steele President & CEO Ursa Resources Group II LLC

Stephen Moore Economist The Wall Street Journal

Brandon Sear Partner Grant Thornton LLP

H. Craig Clark President & CEO Wishbone Energy Partners

3

Companies Represented – 192 Activa Resources LLC Alcorn Exploration Ankor E&P Holdings Corp. ArcLight Capital Barrier Advisors BlueRock Energy Partners Bracewell & Giuliani Burleson LLP

Adams Resources & Energy AlTreo LLC Aon International Argent Energy Trust Bennett Investments BNP Paribas BreitBurn Energy Partners

Addax Minerals

Agatsu Holdings

Alvarez & Marsal Holdings Apache Associated Bank BHP Billiton Petroleum Bonanza Creek Energy Inc.

Amegy Bank Arabella Petroleum Bank of Texas Bill Barrett Corp. BP Energy Co. Bright Horizon Resources

Caltex84 Resources Inc.

Calvetti, Ferguson and Wagner

Capital One Bank

Breitling Energy Co.'s

Castlerock Energy Group LLC CFO Resources Inc. CHR Energy Partners LLC

Central Resources

Centurion Partners

Chart Resources LLC Clarkson Capital Markets

Chestnut E&P Clear Fork Royalty

Community Trust Bank

Crestmark

DelTex Capital

Denbury Resources Inc.

Denham Capital

Devonshire Investors

Donovan Capital

Dontech Etl. Elite Compression Services

Dot Oil LLC

Cargill Inc. Cessna Cholla Petroleum Cobalt International Energy

Eaton Group Inc. EnCana

EnCap Investments LP

Energy XXI

EnerJex Resources Inc. Fairways Exploration & Production LLC

Embassy Oil Co. Energy & Exploration Partners Enertia Software

Digital Solid State Propulsion LLC Eagle Energy Co. of OK Embraer Executive Aircraft Energy Spectrum

Forge Energy

Founders Aviation LLC

FTI Consulting

Global Geophysical Guggenheim Hunt Consolidated Energy Itech Recycle Solutions America Knight Resources

Grant Thornton LLP Henry Resources LLC Iberia Bank

Grenadier Energy Partners Hess Corp. Iberia Capital Partners

JPMorgan Chase

Kayne Anderson

KPMG

LINN Energy

Localingua

M1 Energy Capital Maine Pointe LLC

Macquarie Bank Marathon Oil McGriff Seibels & Williams

Legado Resources Longhorn Natural Resources Macquarie Capital Matrix Oil Corp.

EnerVest Ltd Fivestones Ventures Inc. Future Petroleum Co. LLC GSO Capital Partners Holland Services ING Capital LLC Key Banc Capital Markets Lime Rock Resources Looper Reed & McGraw PC Magee Corp. MBI Oil and Gas

Merit Energy Co.

MexTex Operating Co.

Enstream Capital

McElvain Energy Inc.

Five States Energy

4

Michelson Energy

Mizuho Securities USA Inc.

Monterey Energy Group LLC

Municipal Energy Resources

Murchison Oil & Gas Inc.

Navajo Nation Oil and Gas

NGP Capital Resources Co. Offshore Domestic Group

Oak Hill Investment Management

O'Brien Energy Co.

Onewest Bank

Opal Resources LLC

Opportune LLP

Paramount Operating LLC

Pareto Securities Inc.

PayRock Energy

Petro Harvester Oil & Gas

Petro Reports

Plano Petroleum LLC

PLS Inc.

PNC Bank

Preng & Associates Quantum Energy Partners Red Willow Production Co. Sabine Oil & Gas LLC

Presco, Inc. Quantum Resources Management, LLC Relentless Production and Development LLC San Pedro Development LLC Sigma3 Integrated Reservoir Solutions Inc.

Producers Energy

New Prospect Co. Occidental Petroleum Open Choke Capital Management LLC Parkman Whaling LLC Phillips Energy Partners LLC Post Oak Energy Capital Prudential Capital Group R360 Environmental Solutions S&B Infrastructure Ltd Sempra U.S. Gas and Power

SFC Energy Partners

Morgan Stanley Capital Group Netherland, Sewell & Associates Inc.

Questar Riviera Ensley Energy Advisors Scotiabank Sklar Exploration

Societe Generale

Southern Star Exploration

Starboard Resources Inc.

Steptoe & Johnson PLLC

Stonepoint Strategic Advisors Inc.

Sulzer Pumps

Suntrust Bank

Tall City Exploration

Talos Energy LLC

Tempus Aircraft

Terra Environmental Technologies

Texas Crude Energy LLC

Texas Independent Exploration

The Dernick Co.'s

The Hise Co.

The Wall Street Journal

Tradition Midstream

THP Partners

TVM Capital

UHY Advisors

Union Bank

URSA Resources

W&T Offshore Inc.

Weisser, Johnson & Co.

Wells Fargo

US Energy Development Corp.

WildHorse Resources

Willis Global Energy

Wishbone Energy Partners LLC

ZaZa Energy

The Trimountaine Group LLC Tudor, Pickering, Holt & Co.

5

Energy Capital Conference Statistics Attendees Total Registered

378

Countries Represented Canada – Alberta, Ontario

Nigeria

United States of America

19 U.S. States Represented California Illinois Massachusetts Ohio Utah

Colorado Kansas Nevada Oklahoma Virginia

Connecticut Louisiana New York Pennsylvania West Virginia

Florida Maryland North Dakota Texas

7th Annual Energy Capital Conference 2014 – Save the Date The 7th annual Energy Capital Conference has been expanded to address asset capital, intellectual capital and financial capital, in Houston, the energy capital. Today's boardroom discussions focus on preparing for the new landscape in oil and gas. What opportunities and challenges will come with pervasive consolidation? How can companies prepare the next tranche of senior leadership? How can margins be improved through drilling efficiencies? Where can growing companies find the right capital? Discuss, strategize and network with the best at the Energy Capital Conference. Additional information, including the agenda and speakers will be available soon. Mark your calendars for June 9-10, 2014, as the Energy Capital Conference returns to the Omni Houston Hotel.

6

Energy Capital Conference 2013 Audience Breakdown Attendee by Job Function

Administrative 2%

General / Corporate Management 62%

Consulting 3%

Legal 3%

Other/Unspecified 12%

Sales/Marketing 11%

Engineering Mgmt./ Tech/R&D/Field 7%

Attendee by Company Type

Banking/Finance 32%

Oil and Gas Operator Privately Held 24%

Service and Supply Oil and Gas 11% Operator - Public Company 15%

Midstream/ Consulting/Other 18%

7

2012 Oil and Gas Investor Excellence Awards Through triumphs, turmoil or uncertainty the executives who run successful companies cannot be timid. No matter what kind of seas they encounter, they must maintain a steady hand on the tiller and a steady course, keeping their compass fixed on the goals set forth by the board and their senior management teams. So it was in 2012 for these companies and individuals, the award winners in Oil and Gas Investor’s 10th Annual Excellence Awards program. They were nominated by their peers and our readers, selected by the editors and were awarded their trophies during the 6 th annual Energy Capital Conference in June.

Executive of the Year Mark Ellis Chairman, President, CEO Linn Energy LLC

Best Financing of the Year Linn Energy LLC

A&D Deal of the Year Denbury Resources Inc.

Best Discovery Cobalt Energy International Inc.

Best Field Rejuvenation Plano Petroleum LLC

Best Performance of the Year Bonanza Creek Energy Inc.

8

Presented at the Energy Capital Conference Oil and Gas Investor’s Inaugural “Twenty UNDER 40” The “Twenty UNDER 40” list showcases 20 younger E&P professionals who demonstrate impressive initiative and talent, inspire and motivate colleagues, are engaged with their communities, and are expected to lead the industry in the future.

Eric Alfuth CFO Starboard Resources

Matt Blomstedt Senior Staff BD Sabine Oil and Gas

Shawn Canaday VP Finance Berry Petroleum

Joseph DeWoody President Clear Fork Royalty

Ian Doiron VP Acquisitions Phillips Energy Partners

Tim Duncan President & CEO Talos Energy

Matt Gentry VP BD Engineering Forge Energy

Lauren Germinario Land Manager Navajo Nation Oil and Gas Co.

Kate Gibson Attorney Central Resources

Jason Hoisager President Arabella Petroleum

Jeff Kummer VP Operations MBI Oil and Gas

Michael Magilton VP Treasurer Quantum Resources

Lance Robertson VP Eagle Ford Operations Marathon Oil Co.

Gregory Robbins VP Corp. Development Memorial Production Partners

Josh Rowan Project Services Support BHP

Bryan Sheffield President Parsley Energy

Dwayne T. Stewart President Fairways Exploration Production LLC

Robert Watson CEO Enerjex

Justin Woody VP Engineering & Geoscience Questar Corp.

Janet Yang Director of Strategic Planning and Analysis W&T Offshore

9

Photos from 2013 Energy Capital Conference

The Energy Capital Conference has always been a place where deals are discussed, made and acted u p on !

10

The Energy Capital Conference attracts a C-suite level audience among both private and publicly owned oil and gas production companies and the people who can provide equity capital.

11

Thank You to Our Sponsors!

12