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.
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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
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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
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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
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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.
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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.
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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%
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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.
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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
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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 !
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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.
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Thank You to Our Sponsors!
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