Oil and Gas Investment Banking

Hello. I am currently in the process of deciding what MBA programs to apply to. I have past experience in oil and gas and have an engineering degree. My question is what MBA program(s) are the best to break into oil and gas investment banking? I'd appreciate any input/suggestions! Thanks.

 

For Houston IB, Rice and UT are on equal footing. I believe Rice has placed slightly better by numbers the last couple years and McCombs slightly better the couple years before that, but they're pretty much equal. My suggestion is to focus on other aspects of the schools when making a decision.

I also suggest to not narrow down your target banks so much this early on - get to know the bankers in Houston first (once you start the recruitment process).

 

Better to get BB in my opinion, BC you have higher degree of certainty about what your experience will entail (boutiques can be really hit or miss), and brand matters early in your career. I think a lot of people also discount the value of the network you get from BB -- you get to know a lot of other young ambitious people at an early stage in their careers... at a boutique, the network is obviously more limited.

Boutique or BB, don't expect to become an expert at anything except formatting PPT and Excel shortcuts (I dont say that in a demeaning fashion). You will pick up crucial finance, accounting and industry skills in addition to general business skills -- managing office politics, saying no without saying no, etc. -- but in IB you will not become a master of your industry. That being said, it is a great place to learn and a great first step.

 

Not unreasonable, as long as your experience is relevant and other credentials aren't terrible. In fact, it would be favorable to hire you on with good industry experience rather than a newbie fresh from school.

Sometimes the O&G companies say they have better rotational programs than they really do, so just be sure you like what you're getting into and not being sold a story to drag you into what is really a shitty role. Doesn't hurt to write CFA while in the company too. I know if you spend too long in the O&G industry the banks may look at you like "how is this guy going to perform in our intensive banking indsutry when he's used to the easier hours and laid back lifestyle of O&G industry? What took him so long to want to leave?".

Would you burn any bridges by signing up for a stint at these companies and only doing 1 year when they likely plan for you to have a 2-3 year program there?

 
paradox71582:
Not unreasonable, as long as your experience is relevant and other credentials aren't terrible. In fact, it would be favorable to hire you on with good industry experience rather than a newbie fresh from school.

Sometimes the O&G companies say they have better rotational programs than they really do, so just be sure you like what you're getting into and not being sold a story to drag you into what is really a shitty role. Doesn't hurt to write CFA while in the company too. I know if you spend too long in the O&G industry the banks may look at you like "how is this guy going to perform in our intensive banking indsutry when he's used to the easier hours and laid back lifestyle of O&G industry? What took him so long to want to leave?".

Would you burn any bridges by signing up for a stint at these companies and only doing 1 year when they likely plan for you to have a 2-3 year program there?

Not at all, My contact understands that i'm ultimately aiming to place into IB. Starting to prep for the CFA next month. I plan to attain a Level 1 before I graduate next year.

 

It will probably be easier to go from 2-3 years as a rotational analyst in corporate finance, to top 15 bschool and then an associate in natres IB. Some people were successful in jumping from industry to industry IB groups (like pharma to heathcare IB, etc.) Trying to get hired laterally will be difficult is my guess.

 

I'm actually trying to do the same. I've heard that it's hard but it is possible. I work for one of the supermajors so I'm hoping this brand name helps me land a gig at a boutique firm. I've been here for about 6 months, so I'm shooting for next years banking analyst class. I would suggest you start networking as much as you can. I've contacted some people at small and MM banks and they have given me encouraging advice.

If they place you in an accounting role then it might be harder for you to make the transition, I got placed in a role where I analyze financials of major and small-time oil companies across the world. Another thing, if you can get into an M&A team in the company then I wouldn't even consider banking, those jobs are sweet. I think they require that you have an MBA from a top school. I know at my company they only hire Rice and UT MBA's for those positions.

Either way I think networking would be the best thing for you right now.

 

I think it's very plausible, although I know a few guys who have done the opposite. If oil & gas is where you want to be, working at a major and then getting an MBA can put you on track to executive positions and serious $$$. If you prefer to be in the IB industry that's understandable, and wouldn't think you would have that much trouble as long as you get some basic valuation and modeling experience.

 
Best Response

I'm sure there are VPs and MDs out there that would love to have someone with true technical petroleum education and experience working for them as an analyst (largely due to the ego boost), and anything is possible..

However, the skillset of a petroleum engineer really wouldn't help that much with energy IB. It would allow you to skip the O&G section of the learning curve (which is already pretty limited at the analyst level), but does nothing to help with modeling / formatting / knowing where files are saved / capital markets understanding, and broadly speaking, ~30 year olds are more resistant to 100 hour workweeks than 22 year olds. So there's really not much of an advantage to being a PE as an analyst in IBD. It's not like you'd necessarily be a good analyst because you understand the technical mechanics of what happens in the wellbore. For those reasons, I'd imagine most groups would be reluctant to bring in an experienced petroleum engineer as an analyst when they have tons of smart 22 year old undergrads without families or responsibilities that they can abuse instead.

You said you had 10 years experience, so I assumed you were early to mid 30s, but then you said you were late 20s. If that's the case, MBA could still be an option, and MBA -> associate level investment banking is a very viable path.

 

For both posters, industry knowledge is nice, but you don't have any transactional experience. The people that I've seen making the jump from industry > IB without prior IB background have always had some background in M&A, either via Corp Dev, or perhaps industry specific consulting that often acted as transaction consultants (not TAS, but technical or market consultants).

 

I recently had several rounds of interviews for an energy IB analyst position. I'm 26 and have almost 4 years of petroleum engineering experience - majority of my experience has been heavy in the property evaluation/reserves reporting role. The transition can definitely be done. I would highly recommend networking through linkedin...trust me.

 

That bad huh, maybe I should change my plan to look for a job in one of the big oils instead? So who are some big players in the I-banks industry that deals with oil and gas / energy stuff?

 

Ducimus nemo rerum occaecati vel. Enim velit reiciendis distinctio delectus est et modi. Rerum fugiat voluptas eos est et inventore porro. Unde rem et beatae blanditiis et. Aliquam et et optio odio. Accusamus maiores et voluptates totam.

 

Consequatur aspernatur corporis possimus exercitationem sapiente laboriosam. Libero eos doloremque nihil enim dolor porro deleniti eos.

Debitis sed omnis laboriosam unde officia ducimus. Soluta nostrum accusamus debitis tenetur suscipit laudantium et. Non ut consequatur harum error voluptatem. Ut inventore ut facere quisquam adipisci.

 

Non inventore aut ut repellendus nulla incidunt. Qui hic hic soluta quaerat odit.

Explicabo voluptas quia ea dolore debitis id. Saepe est deserunt minus qui et nihil enim.

Mollitia beatae aperiam ad sint pariatur. Deserunt aut qui dignissimos. Ut enim recusandae deserunt.

Pariatur veniam sit placeat maiores nisi aut. Dignissimos facere fugiat voluptas rem assumenda. Est quia nesciunt sit dolores odit. Aliquid et esse omnis ab asperiores. Accusamus iusto itaque aliquid qui dolor rerum. Molestiae reiciendis quia molestiae accusantium nulla molestiae repellat voluptas. Cum et qui sit minima quia sunt.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”