I guess this question would mostly pertain to the Houston groups, and perhaps a few NYC and London groups. I am curious how the banks (BB, MM, and EB) stack up to each other now, post-pandemic in the midst of heavy M&A activity.
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TPH does really well.
There’s a good deal of parity in Energy IB. If you’re splitting hairs probably EVR, GS, Citi, Jeff (they kill it in terms of smaller deals), maybe throw in TPH as mentioned already. Different banks are strong in different verticals as well. BarCap, for example, is strong in midstream but not doing well across verticals
Just want to add that Jefferies doesn't kill it in the smaller deals, it kills it in general in Energy. Competes against the BBs and is on track for a really great year this year. Specifically, Jefferies is killing it in Upstream (predominantly A&D) and Midstream M&A (the head of the group is a midstream guy and has worked on well over 250bil worth of midstream M&A). Jefferies is doing so well right now it doubled its class size between SA 21 and SA 22.
Any insight on which energy groups have the best comps and or exit opps?
Jefferies Houston come and get your intern
facts, they gave a stupid amount of offers at my school
I literally could not name a single public M&A deal in the last two years that Jefferies as advised on. Not even any IDR buyouts / C-corp rollups.
I've seen their logo on a ton of private West Texas G&P companies (that still haven't sold....), but that's about the extent of JEF's reach in the midstream market. Fuck, even RBC (who I'd probably consider a poor mans Jefferies, in Houston at least) was on ET/ENBL.
So yeah, this smells like a crock of shit. Plus, did Ralph Eads retire or something? Because he is definitely not a midstream guy. Google "Aubrey McClendon" if you don't believe me.
Thank you for the insight. I thought GS has been known to have a relatively weak energy group?
All banks you listed are good, but going on league tables of Americas Energy M&A deal value over the last decade it’s pretty clearly:
Don’t see where you’re coming from with “parity/splitting hairs.” Barclays has advised 2x as much deal value as Jefferies and Citi almost 2x that of Evercore.
Barclays is strong in midstream, but not “weak” in other areas, or they wouldn’t be at/near the top. E&P: BHP/Merit/BP, ~$11 billion. R&M: Marathon/Andeavor, ~$36 billion. Not to mention Marathon/Speedway/7Eleven, $21 billion. All from last 2.5 years or so.
You also left out J.P. Morgan, which has a great franchise.
I have a buddy at Barc who said they had a tough few months of missing out on the big upstream corporate M&A deals post-COVID, so that’s a valid point. But he made it seem like they’ve got a few big upstream deals mandated right now. Obviously before the last wave of consolidation they used to absolutely crush it so time will tell if the past year or so was just a rough stretch or if they’re on the decline but it seems more like the former.
This is directionally useful but a lot changes over the period of a decade. Barcap is a great place to be but if you look at recent trends (let's call it 2-3 years) they have not been at the top. When heavy hitter MDs leave, business often leaves with them.
Still, this is a good list.
I think using a league table start date as far back as 2010 is pretty misleading, or at least trying to overstate BarCap's current place on the energy totem pole.
It's not the same shop it once was without Pipkin or Skip leading the way. Legendary dealmakers, but neither have been at Barclay's for a while now.
most of the heavy-hitters left Barclays over 6 years ago and the bank has remained #1 over the last 5 years. Feel like credit should be given where its due.
Agree with above that over last 1-2 years Barc has been more like 3-5 across all verticals but I see legacy relationships continuing to allow the bank to thrive or move further up the league tables again. Still easily the best group at Barclays >= P&U.
I’d also add that I’ve seen JPM on a lot of stuff recently. Don’t know anything about the group or how good they’ve been historically but lately they seem to be doing well.
Looks like MS, CS, and UBS preformed really well last year. Pretty surprised to see UBS performed that well
https://www.globaldata.com/morgan-stanley-evercore-top-ma-financial-advisers-value-volume-global-oil-gas-sector-2020-finds-globaldata/
Given their restructuring focus as well with market conditions, I'm surprised no one said Moelis
Lol, there aren't gonna be restructurings when the oil is at $70. GIven the firm's strong focus on FCF generation and the strong commodity prices, energy companies have been doing extremely well this year.
Yeah fair point - was more so referring to the last year's market conditions
Are any banks in Houston focusing on renewables?
GS runs a lot of its energy tech deals out of Houston which overlaps with renewables and mobility. Would say the companies are more on the technology/tech-enabled side vs. pure projects. GS Houston recently was on the Bird Scooter deSPAC along with several EV charging companies.
Citi's Clean Energy group head sits in Houston + their NRCET co-group head is in Houston as well. See any of the recent de-SPACs (Archea - however you spell it, the RNG company, an solid state battery company who's name I'm blanking on, multiple EV manufacturers, etc). Pretty sure their downstream/refining group is in Houston, which I'd suspect might/will get merged into their CET vert, with all the renewable diesel and biofuels projects that are going on atm.
https://www.bloomberg.com/news/articles/2021-03-29/citi-creates-new-investment-banking-unit-in-sustainability-push
https://www.reuters.com/business/sustainable-business/citigroup-forms-energy-transition-group-within-investment-banking-memo-2021-05-13/
Ligma was pretty dominant in the early 000s
This may be a stupid question but are banks hiring at the associate level? Would coming from a non energy group (industrials) be a deal breaker? Really looking to get to Houston and have a genuine passion for energy but not sure if I'll be screened out immediately as a lateral candidate.
If you check LinkedIn there are quite a few openings at banks in Houston, not totally sure at the associate level but I’ve definitely seen one or two public job postings for associates, and tons of analysts. If you can articulate an interest in energy and being in Houston, and can show that you’ve done some research to prep for the interview (i.e. read energy industry primers and get up to speed on valuation) you should be able to land a role.
Anecdotally, most laterals I’ve met in Houston come from Industrials backgrounds. It shouldn’t be hard to find some to chat with you
You're the ideal candidate with an industrials background and energy interest, assuming you have family or ties to Houston. Definitely start networking, literally mention in the email that you're (from / have family in) Houston and looking to get there.
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