How is the energy industry doing?

The new RFS2 regulation could have a significant impact on the final marketers of oil.

Here is some reading on it: http://www.stoel.com/webfiles/RFS2_White_Paper_Stoel%20FINAL.pdf

Look into tight oil resource plays in North Dakota and Montana, it's set to explode. Look up the Bakken formation. They're using horizontal multifrac drilling (just like with shale gas) to unlock a ton of oil that was previously uneconomical. There's a ridiculous amount of oil potential there right now.

I wouldn't get too technical if you're not that familiar with the space. Definitely look at some of themes mentioned above including companies shifting exploration dollars to oil prospects (Bakken, Niobrara, Eagle Ford), recent M&A activity in the GOM reflecting the expectation that drilling activity will return, and JVs with foreign companies (i.e. Pioneer w/Reliance, Chesapeake with CNOOC, Chesapeake with Total, etc.). For example, look at some recent headlines for Chesapeake and read up on what its management is focusing on these days....pretty interesting discussion points (monetizing investments, shifting its E&P focus, etc.).

Regulation is definitely a "theme" these days, especially in the Gulf area. Check out this article in today's journal about the planned Ensco and Pride merger.

http://online.wsj.com/article/SB100014240527487044222045761298002740942…

What chemical bank/cradle said. Shale gas --> shale oil plays. You could read up on MLP's as well... but be careful with all of this stuff...you don't want to give him enough rope to hang you with.

Thank you guys, this is very helpful. And yes, since the meeting is only a couple of days away I don't want to give the initial impression of being all over the technicalities to then appear with my pants down once he scratches the surface.

Never seen a consistent trend for M&A, just ramping up when a new area comes into play and everyone trying to jump onboard before land prices sky rocket. Equity raises for development are skewed towards Q1 after the numbers come out as markets are more receptive at that time.

O&G is one of the few industries that can have a lot of strong boutiques due to the need to continuously raise money to replace reserves via drilling, mergers, or A&D.

As gobstopper mentioned, the industry doesn't have a well defined trend for M&A activity, though there has been a lot of exciting activity in the E&P space in the past year or two. There is always going to be a strong demand for capital markets activity due to the fact that a great majority of companies outspend their free cash flow with capex (you gotta pay to drill and have to drill to get paid), but it's tough to say when M&A activity will happen because it's so dependent on discovery of assets. When new plays open up you'll see a lot of Asset acquisition and potential for corporate acquisitions to gain assets/entrance to the play. It's tough to forecast though, because the big companies are so well established that they really only make moves when there is an explosive play taking off. Doesn't make a lot of sense for them to acquire only to receive minor incremental increases to production.

These stocks are driven by reserve growth, and right now the only way to really get that is via acquisitions. I expect more M&A in the space as time goes by. There's a reason Moelis recently expanded into energy, that guy's smart enough to get what's going on...

Activity Pick up?

Exonn bought XTO last year. Shell bought East. Exonn just bought Phillips. Apache bought the BP assets in Motney/Horn river. Range has expanded and keeps doing so. El Paso is trying to find financing for their Eagle Ford plans. Chevron bought atlas. As well as the onslaught of JV deals coming from Asia into North America.

There is lots going on. All the majors are setting up plays in the shale and liquids rich areas.

Thanks guys. I'm looking to make a transition from one of the supermajors (financial analyst) to Oil&Gas Ibanking. This information was very helpful...

lol, no one on the street will respect you for doing manual labor

wishful thinking bra

The flaw with this plan is that working on an oil rig you will be a mindless laborer. You will not learn the business or learn any insight from mopping the floors. A VP from Halliburton might be qualified to make this transition because he has seen the big picture. I would suggest skipping the whole working on a rig plan altogether and just go for a degree.

Additionally, I like your shoot for the stars mentality but, there are some things you need to understand about PE and high finance in general.

It is extremely structured and it is extremely difficult/impossible to break into this field unless you follow the traditional route.

Said traditional route for PE:

1. Top Undergrad
2. Top Investment Banking desk at a Bulge Bracket
3. Possible Opportunity for PE, still extremely competitive.

IvySachs

Additionally, I like your shoot for the stars mentality but, there are some things you need to understand about PE and high finance in general.

It is extremely structured and it is extremely difficult/impossible to break into this field unless you follow the traditional route.

Said traditional route for PE:

1. Top Undergrad
2. Top Investment Banking desk at a Bulge Bracket
3. Possible Opportunity for PE, still extremely competitive.

I feel the college route first won't put me in a good enough position to network throughout the industry as a whole. I wanted to use the money I would make on the rig to start different business ventures on the side, and my entrepreneurial background might be able to trump an education. Also attending a "top" university as of now is a little out of my league due to poor high school performance, I was worried about trying to get rich by 18. I just don't see how else you can thoroughly network in the energy business by 1) not being in Texas 2) not working in the industry. There are loads of energy PE firms in Texas.

Given my situation can you advise me on how working for a oil rig gaining contacts would hurt me? Especially if I plan on undertaking business ventures while I work. Private equity is a relationship based business, that is what leads me to believe my plan isn't to far fetched as you say. What are the actual transferrable skills you need to succeeed in private equity? Because I can always display gained knowledge while building relationships. I could be wrong. 1) Actual oil and gas experience 2) Stronger industry contacts 3) Business Experience

Thank you for response

watersign

lol, no one on the street will respect you for doing manual labor

wishful thinking bra

my new response was for you as well!

Thank you

I'm almost sure your a troll but, here it goes because I'm extra bored.

People without degrees have trouble getting jobs as secretaries these days but, here you are some kid with a high school diploma talking about PE.

Anyways, you talk about contacts right? What effin contacts? As was previously stated, you may get a job as a janitor on a rig that will not entitle you to network with the company's executives or anyone that matters. How is that so hard to understand. People working at McDonalds don't go from serving fries to being vice presidents.

IvySachs

I'm almost sure your a troll but, here it goes because I'm extra bored.

People without degrees have trouble getting jobs as secretaries these days but, here you are some kid with a high school diploma talking about PE.

Anyways, you talk about contacts right? What effin contacts? As was previously stated, you may get a job as a janitor on a rig that will not entitle you to network with the company's executives or anyone that matters. How is that so hard to understand. People working at McDonalds don't go from serving fries to being vice presidents.

Its funny you bring someone up that serves fries won't end up VP. You obviously don't know the VP of Mcdonalds, or the CEO of Enterprise rent a car or countless other people that started from the very bottom. I am an entrepreneur first and foremost and that alone for my age is enough to get attention of just about anyone. A private equity firm in my city now has people employed as analyst with absolutely no degree. Your dumb if you think you can't network as even a janitor for any company for that matter. People care about how smart you are, the degree is just one way of many displaying talent.

Klutch1 IvySachs:

I'm almost sure your a troll but, here it goes because I'm extra bored.

People without degrees have trouble getting jobs as secretaries these days but, here you are some kid with a high school diploma talking about PE.

Anyways, you talk about contacts right? What effin contacts? As was previously stated, you may get a job as a janitor on a rig that will not entitle you to network with the company's executives or anyone that matters. How is that so hard to understand. People working at McDonalds don't go from serving fries to being vice presidents.

Its funny you bring someone up that serves fries won't end up VP. You obviously don't know the VP of Mcdonalds, or the CEO of Enterprise rent a car or countless other people that started from the very bottom. I am an entrepreneur first and foremost and that alone for my age is enough to get attention of just about anyone. A private equity firm in my city now has people employed as analyst with absolutely no degree. Your dumb if you think you can't network as even a janitor for any company for that matter. People care about how smart you are, the degree is just one way of many displaying talent.

Success on the job in Private Equity is solely based on analytical skills as well as how the individual can harness relationships. I don't know about you but the business relationships and investors I have had for my past ventures never ever asked for a degree of any sort. Solely based off of the plan I put together and my ambition nothing more.

You seem to have your mind set on it, why bother posting