I've managed to get an interview with the internal M&A group at large exploration and production company. The group looks for corporate and asset acquisition opportunities. I've been working for the past year as an analyst at in an oil & gas group (think BMO / William Blair / RBC / Capital One), so gotten some experience, but not a ton of deal flow.
Wanted to see if anyone had any experience with this type of job, and what type of questions to expect?
I figure they will ask me what kind of valuation metrics I look at (EV / EBITDA, EV / Daily Producing, EV / Proved Reserves), ask about recent deals in the industry and the plays in which they operate. Anyone else have any ideas about what type of things they may ask?
I would imagine they would test your oil & gas industry knowledge as well, being that they are an E&P company... they might ask you about their assets, and I'd be shocked if they didn't ask you what you think some good buying opportunities are for them given their current balance sheet and asset portfolio. Just my $0.02 though, never actually dealt with this.
I'm sorry I can't really be much help when it comes to oil and gas. I did, however, just receive an offer with an internal M&A group at a pharmaceutical company. I can say that my interview was not nearly as tough as IB interviews were. I got a few technical questions regarding industry specific valuation techniques, recent deals and (IMO the toughest part) questions about the future of the industry as well as my opinion of future industry M&A activity. Most of the questions were fit, it was a super relaxed interview and they know you get the technical aspect of the job (from IB experience), just be cool and prepared to answer a few techs, which should be a breeze for you. good luck!
I agree with Beef. I'd also look at the economics of drilling in certain basins and have a comfortable understanding of the costs/potential returns. i.e. an understanding of expected cash flow from a well after netting out production costs. You don't need to be an expect, but I would expect the job would entail evaluating acquiring acreage positions that may or may not have current produciton....so you're going to need to know some comps to look at acreage prices too.
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