Oil and Gas Investment Banking: Second Round Interview Help

To improve your chances of securing a second-round interview in Oil and Gas Investment Banking, here are some actionable tips based on the most helpful WSO content:

1. Master Technical Knowledge Specific to Oil & Gas:

   • Be well-versed in upstream, midstream, and downstream operations. Understand how upstream valuation differs from traditional valuation and have a high-level understanding of midstream valuation.
   • Know pricing benchmarks like Cushing, Midland, Gulf for oil, and Henry Hub/Waha for gas. Be prepared to discuss why WTI trades at a discount to Brent or why Midland trades at a discount to NYMEX WTI.
   • Understand the reserve booking process and why proved or proved developed reserves are critical for benchmarking upstream peers.

2. Stay Updated on Market Trends and Deals:

   • Research recent deals in the sector, such as Encana/Newfield, Chesapeake/Wildhorse, BP/BHP, and Diamondback/Energen. Be ready to discuss these transactions and their implications.
   • Understand capital markets trends, such as the limited recent IPOs/equity market issuance and the trend of revolver facilities among oil and gas companies.

3. Prepare for Common Technical Questions:

   • Be ready to answer questions like:
     • Why is crude trading at a discount in West Texas vs. Cushing?
     • Rank the three energy verticals (upstream, midstream, downstream) by beta, lowest to highest.
     • What caused the price crash in 2014?
   • Practice accretion/dilution, LBO/IRR, and other modeling questions, as these are often tested.

4. Enhance Your Interview Strategy:

   • Focus on your ability to articulate your knowledge clearly and concisely. Interviews often test not just technical skills but also how well you can explain complex concepts.
   • Prepare a compelling answer to "Why Oil & Gas?" and tailor it to the specific bank or team you're interviewing with.

5. Leverage Resources:

   • Utilize guides like the WSO Investment Banking Interview Guide and other technical prep materials to ensure you're over-prepared for any technical questions.
   • Take advantage of courses that focus on modeling, valuation, and industry-specific knowledge to fill any gaps.

6. Network Strategically:

   • Continue networking with professionals in Oil & Gas IB. Building relationships can sometimes provide insights into what specific teams value in candidates.

7. Mock Interviews:

   • Conduct mock interviews with a focus on technical and behavioral questions. Feedback from peers or mentors can help identify areas for improvement.

By combining these strategies with your ongoing coursework, you'll be better positioned to excel in future interviews and secure that elusive second-round opportunity. Good luck!

Sources: Breaking into Oil & Gas / Energy as a UG, Oil&Gas interview, Oil & Gas Drilling Engineer to Investment Banking in Oil Gas, Corporate Strategy vs Corporate Development, UG Recruiting Part II: The first round interview