Oil Company M&A / Strategy Analyst
Obviously the bulk of WSO caters to IB/PE/HF/VC. I'm wondering if anyone out there could provide commentary on being an oil company financial analyst in an M&A / strategy / development role, where you're determining how to most effectively invest in the company's future. Interested in either supermajor or independent companies, but would also be interested in any differences. I'm familiar with how the sell-side functions in this space, but what is life like on the principles side?
What is the day to day like? Typical background of an entry level analyst? Career advancement (internal and exit opps)?
Thanks.
If I get what you're saying, you are looking for an oil company more than a boutique IB dealing with Oil&Gas.
I have never worked in the oil industry but I'm looking at an internship for this summer in a similar role. I can't really help you on the day to day stuff, but I've been told that it's really hard to get your foot in the door if you don't have a strong network or family in the field. A business background with previous financial internship(s) would be recommended. Studying STEM is more appreciated than in the pure financial industry since it can give you a better understanding of the mechanics behind oil extraction/engineering.
Look for Texas, Oklahoma, Netherlands (Antwerp & Rotterdam for trading and shipping), Switzerland (Geneva in particular for trading), Venezuela (Caracas, but I wouldn't risk it). You could also bet on Asian hubs like the gulf countries, Singapore and others. I've also heard that Dublin was doing well on Northern oil.
I know it's not much, but good luck.
Can't contribute much about the job itself, but it appears that a lot of analysts at energy IBD groups end up in corporate development roles at oil and gas companies
Roberto is correct, a lot of IBD leave and go to business development on the issuer side, this makes me think of a funny story though. A buddy of mine was at an issuer, he talked to his boss about wanting to leave to go agent side (IBD). She tells him that it's a terrible idea. Net day they have a meeting with their bankers, she asks the other side, "what would our company look like if we were to acquire one of these companies? and what combination of acquistions would give us the greatest positive NPV?". As the banker's hearts sink while they realze they have 40+ hours of work to do, she looks at my buddy and says, "are you sure you still want to be on that side of the desk?".
Thanks for the responses guys. Overpaid that's a great story.
I know there's gotta be someone lurking on this board who's performed this role at an oil company.
I left a corp dev role like you described for an IB role. Honestly I found the corp dev role a little boring, and obviously the pay is worse due to much lower bonus (like 10%-12%). Unless you work for a really active company, the work really comes in waves. If you've got a girlfriend or friends in jobs with similar hours it can be fun, but if all your friends are doing banking it can be a little isolating.
As far as work, you do a lot of the same stuff you would be doing in a sell-side role, but at a slower pace. A strategy/planning role won't be focused on deals as much as the internal finances/budgeting, whereas an internal M&A/business development group will get deal activity. Unless it's a really large company, you'll probably be focusing on asset deals.
If you want any more info PM me.
I have been working at a bulge bracket IBD focusing on natural resources sector (metals & mining, E&P, etc). I am also looking to make a career switch to a CorpDev / M&A role at a major oil. And I am moving from APAC to Americas, therefore my previous network developed in Asia cannot be easily utilized.
Appreciate it if anyone could provide some tips in how to break into OG world. Btw, I am going to the US for MBA in August, graduating 2015.
big divide between internal valuation (capital budgeting) and business development roles
Energy M&A (Originally Posted: 03/21/2010)
BAML Energy & Power M&A or DB Energy M&A? Any views?
Side question, do sector coverage group break it down by product? I know BAML has an M&A group... does its Energy group further break itself down into Energy M&A, Energy DCM, Energy ECM, etc?
Baml doesn't break it down. Energy & Power includes both CM and M&A. The only division is that the energy focus is in Houston and all the power focus is in New York.
Are there any BB's in Houston that do break it down so there is a specific energy m&a group as mentioned above?
I know BAML is in Houston and have different divisions for energy...Well at least the person I interviewed with said they had a petroleum and gas division team in their energy division
what is BAML's power team like?
BAML, Barclays, and CS are probably on par with each other for #1 in power and energy. Those three are great at capital markets and M&A.
Citi, WFS, JPM, and RBS are the next batch that are great at capital markets and decent at M&A.
Car Ramrod is on the money.
BAML's power team is pretty solid. Mostly ex-Merrill at the senior levels. Barclays has a bunch of Lehman legacy bankers (some of the top guys left to Citi but have an iffy platform over there). CS has remained even keeled the past few years.
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