Best Energy Groups on The Street
As I start the recruiting process in the fall, I was trying to get a good sense of what the best energy/oil & gas groups are. I saw that BAML advised Shell on their BG acquisition and assume they're near the top, but was looking for some others that are considered strong in this sector.
Also, I would prefer an NYC group over a Houston group so if any do all of their work out of NYC that would definitely be a positive.
Might be off base but I thought most stuff on the energy side is done out of Houston / Calgary. I don't think there are a ton of clients based out of NYC so if you want to be successful long-term in the sector you're likely better going to one of the energy hubs.
This is correct, if you want energy IB then you better get used to humidity.
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Most bulges have an energy/NR group out of NYC, but as mentioned before they include power, utilities, metals, and mining. If you want to do energy and be relevant, you'd have to go to Houston. If you're aiming to go buyside energy long term, it's tons easier to already be in Houston since most of the funds are texas-based.
there are a few deals run out of NYC but they wouldn't be run out of their energy coverage groups, they would be run by their M&A groups.
If you want to do energy/oil&gas you definitely want to be in Houston. I'm in a different industry but have a college buddy who's an associate there. Unsure how the landscape has changed with recent pricing environment, but last time I heard Barclays was best for BB, Evercore or Jefferies for boutique
Lots of info with questionable accuracy on this thread. I don't personally work in Energy IB but I have 2 close friends that do (1 houston office, and the other in the NY office) both at different BBs. I'll just provide my 2 cents:
Yes several banks have Energy/Natural Resources groups at both their Houston and NYC offices, but the type of deals they work on differ. Houston mainly covers oil & gas (which is the largest chunk and usually what people are referring to when they mention "energy IB") and NYC mainly covers Power & Utilities, Chemicals and Metals & Mining (- this group is sometimes classified under the Industrials Group depending on the bank). When the NYC office does get involved in Oil & Gas deals, this is mainly for access to the capital markets (ex. ECM / DCM / HY Financing), but the main advisory side is run through the Houston office (NYC provides more of a support role).
When it comes to overall IB fees (including capital markets), BAML/Citi are usually one of the top (both were top 2 during FY2015 for what it's worth). Not to burst people's bubble but capital markets constitutes a significant chunk of all energy IB activity, much more so than pure M&A by itself. In this regard, the bulk of Citi Houston's fees comes from capital markets activities, hence financing deals (ECM/Debt) are what the analysts in that office will be working on most of the time.
Barclays/GS are also one of the tops - the difference is that they usually have a heavier presence in the advisory side (read: M&A deals) so analysts in those offices will likely end up working on more M&A mandates, rather than just financing deals. If you're aiming Energy PE or the like, M&A deal experience would likely be what you want, more so than general financing deals.
Put it short, Energy as an industry is diversified - if you want Oil & Gas you should really be strictly aiming Houston; for everything else (Power, Chemicals, Metals, Mining) NYC is where it's at.
OP for what it's worth, there are several VERY recent threads on this exact same topic. If you use the search function you'll find everything you need to know. I would take some of the stuff in this thread with a grain of salt
Lazard's us team was named as one of the three firms helping shell divest a 30 bn portfolio and are working on the linn energy situation, so their deal flow is much better than their shitty rep here on WSO. I got into an argument about it on one of the threads.
Lazard has a rightfully shitty rep in Houston because they're not a player on that town. Every sell side I've seen them on was run out of some combination of New York, Paris and London (including the Shell deal you referenced - which also includes BAML and i think another bank on that mandate).
Regarding which bank is best on HOU, honestly I think any one of C, CS, GS, JPM, Barclays, BAML or MS will give you solid deal flow. Shit, even Wells is doing some serious deals (TRP/ Columbia). Barclays (Pipkin, Jacobe) and C (Jamiesen, Trauber) probably have the most high profile MDs but both of those places have issues and the pecking order isn't like it was a couple years ago where Barclays and CS were clearly the strongest.
Regarding New York teams, GS, BAML, UBS and Barclas definitely have people who focus on oil and gas but the main teams are in Houston and they mainly only exist because there are a bunch of legacy MDs who don't want to move to Houston. That's not to say you can't get good experience in New York but you'll have to fight for choice staffing a as the preference is typically given to Houston Jr. Bankers (although not sure what the deal is at GS).
Just using a quick news search, I see that Lazard advised Houston based Columbia Pipeline (in addition to GS) in the TransCanada deal. Also was on $1.7bn Nexeo Solutions (chemical/plastics). Linn Energy and Goodrich Petroleum RX definitely involve the Houston team.
For full disclosure, I don't work there, but my impression is that deal flow has improved.
How are the boutiques? Just wondering, because all my information comes from one individual. Do people ever transfer from other offices down to Houston? Or is it too specialized.
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Best Renewable Energy Groups (Originally Posted: 08/01/2011)
I am considering applying for mainly energy groups/firms and I think there is a bright future in Renewable Energy deals. I have a few questions:
Which firms have the best reputation for renewable energy?
Is a Renewable Energy group even a thing or would they be lumped in with Energy/Oil+Gas groups?
http://www.banking-on-green.com/en/content/news_2807.html
Cleantech is generally what the groups are categorized as. I just had an informational interview with a MM i-bank's head of cleantech on Friday.
I cover cleantech research as part of my summer analyst role on the buy side and, I agree, there's more attention being paid to it. The MD to whom I spoke also said their dealflow in the space has vastly increased, with heavy focus on solar and wind M&A.
You should do a search of the Website; I think we covered this question a few times, But generally, "Cleantech" and the like are covered in Tech & semi conductor types. This is due to the business model, i.e. First Solar is really a semi conductor company. It’s not an energy/power company.
Power assets, i.e. Solar PV, Thermal plants, Wind farms etc are covered in the Power groups. CS has a good shop, I have worked with them on a few deals and they seem legit.
Best energy groups- non houston (Originally Posted: 07/05/2013)
Could someone give a list of the best energy groups in NYC? I'm not really a fan of Houston, would be down with SF or London too.
i don't really have a preference to the size of the company, boutiques, MMs, BBs
Nat Res Nomura London (Loads of Lehman alum)
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