Petroleum Engineer Applying to MBA programs to IB/MBB
I’m in a metro Texas city, late 20s, working for an oil company. Total salary, bonus, stock is between 160-180k, great 401k and I work 45-50 hrs a week. Survived 4 rounds of layoffs.
Graduated from a top 2 engineering college, 750 gmat. I’m currently doing CFA on the side and considering a part time MBA soon.?I want to get into energy IB, and will also entertain consulting but IB is the goal. Maybe stay in the company post MBA.
Is the mba even worth it? I’ve got a good gig w good hours and performance record. My main motivation is the interest in A&D, the IB $$, and a hedge to oil layoffs (ie im assuming I can land a mediocre corp fin job if I get laid off w an mba). Also would I be too old to switch into a finance/IB role?
In addition, been toying with a full time MBA but the cost opportunity is fairly steep.
Does anyone have some perspective on this? I talked to part timers at UT and Rice... most of them stayed in their company and I’m just not sure if the MBA is leveraged in an impactful way.
For consulting there are numerous firms that are either energy focused or have a great energies practice. Most of them won't require an MBA to apply even to a more senior role. PM me if you want some more details.
Thanks! I guess I’m a new user so I can’t PM yet. I think MBB have energy branches as you mentioned. However wouldn’t such companies bucket technical new hires without MBA into a specialist role than a generalist role? Is there significant progression in such a career path? I’d love to hear your thoughts on energy focused consulting.
The energy focused path in the firms that I know is quite good, but before I go on...do you want to be a generalist or are you undecided between Energy and A&D?
You'd be far from the first engineer to get an MBA and then be an associate. You're definitely not too old either. However, I don't know of anyone who has done it with a part-time MBA.
Is it worth it? that really depends - if you want to to IB then it is probably worth it, if you only want to do it due to pay, then probably not. (Also I may be wrong, but i think A&D banking salary is slightly below typical M&A or Rx salaries? but hours may be better?)
Full time vs part time/professional/EMBA - I will say that even if the opportunity cost of a part time/professional MBA is obviously lower (320-360k in your case) it is also significantly harder to break into IB from those programs. Not that they are not good - the top programs are excellent! but the lack of summer internship does make it an uphill battle in years where there is a high return offer rate. It can be done though, and I have met people in both A&D and generalist teams who did part time.
The consulting groups does seem more open to part timers than the banks, but not having a summer internship will make it harder than doing a daytime program at HSW.
I don't know if you can break into an A&D team without an MBA? but a lot of the banks does have engineering teams which could potentially be a stepping stone? or if that is what you want to do. Especially as you would be gunning for Associate roles, i would really try to find out if IB is what you want to do, based on your description you will probably have to take a step back title and responsibility wise, have a significantly different work/life balance which does mean more in real life, than when just imagining how it might be. But if it is a passion then it will work out, if it is solely for the money, then it will probably not last long.
Thanks for the comment! Yes, I do have reservations about how the first 3-5 years of being an associate would look like relative to my current situation (pay & hours). But I work hard anyway and am always learning outside of work so it may not be too bad.
Forward looking - is having an MBA a good “insurance policy”? Not so much about stability - im thinking of diversification. As in there are a lot of jobs one can apply to in various industries. During oil downturns all companies do layoffs and my skill set is specialized.
You absolutely can make it to an A&D team without an MBA (most of those guys at my bank do not have an MBA). Also, it is possible to break into energy IB with your background and a part-time degree from Rice/McCombs. Not very likely for part-time MBAs trying to recruit for IB in NY, but Houston banks heavily value industry experience and are definitely open to it.
Would like to note one thing - you can intern as a part time MBA in IB in Houston (you will obviously have to tell your employer and quit your job). Met several full time associates during recruiting last year who did this. However, if your background is in reservoir engineering (I'm guessing your a petroleum engineering grad from either UT or TAMU), you can probably land a A&D gig without an MBA by just networking, especially if I'm right about your undergraduate institution and have the super deep Houston Longhorn/Aggie network to tap into.
However, if you want to work on the coverage side in energy IB, business school is probably necessary, even if you're doing it part time and recruiting behind your current employer's back.
Do you really know associates in Houston that did part-time MBAs? Not saying you're wrong, just can't think of any off the top of my head.
I have to admit money is part of the equation since I am making a time and financial commitment to do the MBA. For consulting (I'd prob. start out as an Associate) and IB, am I not going to make less money and work ~15 more hours/week after the MBA compared to if I stuck with the company for 2 more years? I get that compound salary growth is A+ in finance but the ROI in my case is a bit more of a involved situation.
You're right though, it looks like for IB, I'd have to be gunning for energy banks, which is fine so I can leverage my technical skils.
First of all, O&G consulting is a little bit of a joke. Only a couple Supermajors and larger independents use them. I have not met too many O&G executives from consulting firms, but have met quite a few with a banking background. If you want to make a move, IB is the way to go. Secondly, I can confirm that there are a few part-time MBA candidates who got O&G IB jobs, however the ones I know have finance, accounting, or law backgrounds. If you decide to hire on to an A&D group you could pigeon hole yourself and lose out on some really good opportunities, such as Finance Manager or CFO of a small independent or sponsor company. Lastly, the finance scene in Houston is small and very tight-knit. Going through the FT program at Rice or McCombs will give you a much better network. There are a lot of people who have switched banks based on a recommendation given by a classmate. Just bite the bullet. You will see the ROI in ~ 3 years, if not earlier.
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