Houston Energy IB Rankings?

JuulAddict's picture
Rank: Monkey | 40

Hey guys, there was a similar post to this made in 2013, but I'm wondering how energy coverage has shifted over the past 4 years. Which BB's/EB's have the best exit opportunities? Which ones have the best culture? Which ones have the best compensation/work-life balance?

Comments (15)

Oct 23, 2017

In no particular order my understanding is EVR (places into to megafunds), Barclays (placed a few at NGP, Encap I believe), Jefferies (keep hearing really positive things about this group), GS are top. I know RBC closed a lot of deals as well. Citi places fairly well and was just on the EQT deal. Wells is growing.

As for Comp -- EB pay above street, and I believe all BB pay street
As for Work Life -- They all work anywhere from 70-100 hours. Just don't expect much in terms for work life from any...

    • 5
    • 1
Oct 23, 2017

Need to include CS somewhere. Definitely a major player, arguably near the top.

    • 3
Oct 23, 2017

Also TPH, Simmons, Greenhill, JPM, Moelis, BAML, etc

    • 1
Oct 23, 2017

I knew I forgot someone. CS kills it

Oct 23, 2017

Placement: Barclays, CS, EVR, GS, MS, TPH, Citi (burdened by larger class size)

Dealflow (and typically worst hours): Jefferies, TPH, EVR, Petrie, GS

Comp: Jefferies (insane comp this year), TPH, EVR, Petrie (all paid above BB)

Culture: Simmons, MS, JPM, TPH; though pretty arbitrary as it really just depends on personal fit with the group for most

    • 3
Learn More

7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

Best Response
Oct 24, 2017

Here comes the Monkey Shit.

1st its important to understand how diverse energy is, and how that effects capital needs.

The shops I would consider 1st tier are primarily E&P focused, and the guys who have leveraged restructuring practice in downturn did extremely well and are best positioned for future business : Jefferies, EVR LAZ (LAZ is where the MS will come from, but after $30 BB of BG divestment you can all eat shit - I don't care if they had to work on some airline deals 12 years ago.)

Jefferies has the best A&D practice on the street bar none. For those out of the loops those are the technical guys that deal will assets. Moreover, upstream asset M&A accounts for ~60% of global investment banking activity. In high commodity price environment even more (ie ~75% of all M&A transactions by value were in this space). They are limited by a number of factors including no balance sheet (they actually have a small one but nowhere near a BB platform).

TPH has fallen far, unfortunately. They preformed poorly during the downturn. (Here is where I get more Monkey Shit). Don't get me wrong, the senior management at TPH are among the smartest in the industry, they are not going anywhere. They just didn't get a ton of restructuring work that I know they were hoping for.

I would say the same thing for CS, but I am less confident on that claim. Only a few years ago they were without a doubt top 3 O&G banks. I don't think they are doing poorly, but I also don't think they could make that claim, today.

Simmons got acquired, nothing spectacular happening there yet, but they are small and OFS focused.

Moelis has good A&D team, and did good restructuring work out. I'd look out for them.

Houlihan Lokey is a major sleeper. Restructuring practice crushed it across the energy platform. Relatively new A&D team, top of the industry guys who have gotten a few impressive deals done during the downturn. Well positioned - would keep an eye on them too. OFS team has done some cool sh*t in the MM as well, but no BH/GE.

Most of the BB's compete over capital-intensive-advisory-light midstream I won't call this Second tier, because it's not. But, it wouldn't be fair to try and compare the success of Jefferies to the success of Citi.

That said - the banks that I see compete most effectively in this midstream space, which also have a respectable - crushing it advisory practice are Citi, BAML, JPM, MS.

Note that GS is left off. They have a good, relatively balanced practice across multiple sectors, and at the end of the day they are still GS. However, They do not have the presence in O&G that lives up to the hype. OFS is strongest sector, and there are only a handful of companies of that type of the size they deal with.

Exit ops are going to be basically the same at any of these (ie you can easily go wherever you want afterwards, except maybe TPH, Simmons, HL, and you could still get wherever you want to go with a little effort)

EBs pay the best, work the hardest. The BB midstream seem to have good worklife balance and great pay (relative to their NY counterparts).

Anything downstream from here will (probably) be better hours, worse pay - although the pay will probably not fluctuate much for top bucket.

    • 12
    • 2
Oct 24, 2017

realjackryan, where would Barclays' Houston team fall in this context?

Oct 24, 2017

Any insight into Wells? Have heard some mixed things on here regarding their energy practice in Houston.

    • 1
Oct 24, 2017

My understanding is that it's pretty slow. I know their summer '16 SA class had multiple people either turn down FT offers or go elsewhere shortly after (Simmons and Jefferies).

    • 1
Oct 24, 2017

Agree with a lot of what you've said here and only disagree on LAZ's positioning. They've been involved in a lot of the E&P restructurings, but don't seem to have done a good job converting that into A&D work (i.e. debtor-side on Linn but Jefferies brought in for all the post-reorg asset sales)

    • 1
Apr 4, 2018

In regards to reputation, how does GS stack up against BAML, JPM, and MS? I know GS has a strong presence but I'm just curious about what you've heard/what the general view is.

Oct 25, 2017

LAZ is killing it

Oct 25, 2017
southern_beta:

LAZ is killing it

nope wrong

    • 2
Nov 27, 2017
Comment