2011 A&D Strategies Conference
August 29, 2011
Upstream A&D Today: An Overview of the Current Upstream Market, and What is Motivating Buyers and Sellers Today
Learn about current leading types of transactions, buyers, sellers and recent trends affecting both buyer and seller motivations. What types of transactions will they do and at what price?
- Ken Olive, Chairman and CEO, The Oil & Gas Asset Clearinghouse
- Lance Binder, Executive Vice President, Netherland Sewell & Associates Inc.
- Daniel C. Herz, Senior Vice President, Corporate Development & Strategy, Atlas Energy LP
- David Beathard, Vice President, Business Development, Linn Energy, LLC
- Doug Krenek, President & CEO, Chalker Energy Partners
- Scott Potter, Director, West Coast Region, Baker Communications Instructor, Negotiations Training Institute
- Jim McBride, Head of Investment Banking, Capital One Southcoast
- R. Jason McMahon, Partner, EnCap Investments LP
- Brock Hudson, Senior Vice President, Energy/Capital Markets, Amegy Bank NA
- Nancy J. Kerby, Principal, Terra Firma Ventures LLC
- John D. Jacobi, Vice President of Business Development, EXCO Resources Inc.
- Jerry Windlinger, Vice President U.S. Business Development, Anadarko Petroleum Corp.
- Doug Krenek, President, Chalker Energy Partners
August 30, 2011
Opening Keynote: Global Energy Capital and Oil & Gas Markets
Oil is hot and gas is not. How do the transaction metrics compare? Would you get more value from a joint venture or a sale? A drilling trust? Maybe even drilling-trust some of your JV acreage? While deal-making has been robust, are traditional asset packages sidelined? What is driving valuations on deals—acreage or production? Unconventional-resource plays—both new, liquids packages and old, dry-gas ones—are reshaping the marketplace.
Cost & Competition For High-PDP (80%) vs. Low-PDP (20%) Plays
MLPs, traditional E&PS and start-up E&Ps are competing in datarooms for high-PDP packages, including even unconventional that are coming onto the market, such as the Barnett and Fayetteville. What do these cost today and what types of E&Ps are able to place the highest offers?
The JV method of raising drilling capital to hold acreage while freeing cash flow and keeping debt in check continues to be an accessible path for U.S. acreage-holders. What are the latest deal terms and in what plays, and who are the potential partners? How is the infusion of majors and foreign buyers into the U.S. marketplace affecting cost of entry for independents?
Conventional assets are gaining great attention again, as most of these are HBP and may be prospective for new horizontal targets. Meanwhile, unconventional assets—both HBP, such as in the Barnett, Fayetteville, Haynesville, Woodford, Eagle Ford and Permian, as well as primarily acreage-only, such as in the Bakken, Marcellus and Niobrara—continue to captivate U.S. and global buyers. What’s it cost to enter these, to renew leases and expand?
Most purchases today are being done with cash, as both major and independent oil companies have strong access to debt and equity markets. Meanwhile, some are for stock, such as in the Plains/McMoRan deal in the new-regulation-stricken Gulf of Mexico. What are the unique dynamics driving the “cash v. stock” question today? And, what is the impact of financial buyers, such as KKR's investment in Hilcorp South Texas?
The next emerging play might be a familiar name, such as Mississippi Lime. Horizontal technology and multi-stage fracing are making old vertical plays new again. Where are these conventional formations that are ripe for horizontal surfacing? What forgotten formation might lie beneath your HBP?
Accessing acquisition funds can range from the simple bank loan to the complicated SPAC, depending on your business model and changing costs of capital. Find out what capital is most available and least expensive today and what it will take to tap it. Also, discover how competitors’ access to this capital affects the prices being offered for the assets you seek.
The U.S. Drilling Trust and the New Canadian Royalty Trust
U.S.-based E&Ps, such as Energy Corporation of America and SandRidge Energy Inc., are accessing the royalty-trust method of raising drilling capital. And, Canadian E&Ps are capitalizing on a distinct royalty-trust tax favoritism by buying and developing U.S. properties. What’s the cost of capital and upside for a U.S. trust model and what cost-structure advantages does a Canadian trust have in the U.S. property market?
Energy private-equity remains fully loaded to invest in E&P, both big and small. Some funding is for start-ups; some is for partnership in existing assets, such as KKR’s investment in Hilcorp’s South Texas portfolio. Which firms continue to seek to fund good stories?
Opening Keynote: Global Energy Capital and Oil & Gas Markets
- Bobby Tudor, Chairman & CEO, Tudor, Pickering, Holt & Co. LLC
Oil is hot and gas is not. How do the transaction metrics compare? Would you get more value from a joint venture or a sale? A drilling trust? Maybe even drilling-trust some of your JV acreage? While deal-making has been robust, are traditional asset packages sidelined? What is driving valuations on deals—acreage or production? Unconventional-resource plays—both new, liquids packages and old, dry-gas ones—are reshaping the marketplace.
Cost & Competition For High-PDP (80%) vs. Low-PDP (20%) Plays
MLPs, traditional E&PS and start-up E&Ps are competing in datarooms for high-PDP packages, including even unconventional that are coming onto the market, such as the Barnett and Fayetteville. What do these cost today and what types of E&Ps are able to place the highest offers?
- Harrison Williams, Executive Vice President, Albrecht & Associates Inc.
The JV method of raising drilling capital to hold acreage while freeing cash flow and keeping debt in check continues to be an accessible path for U.S. acreage-holders. What are the latest deal terms and in what plays, and who are the potential partners? How is the infusion of majors and foreign buyers into the U.S. marketplace affecting cost of entry for independents?
- Bill Marko, Managing Director, Jefferies & Co. Inc.
Conventional assets are gaining great attention again, as most of these are HBP and may be prospective for new horizontal targets. Meanwhile, unconventional assets—both HBP, such as in the Barnett, Fayetteville, Haynesville, Woodford, Eagle Ford and Permian, as well as primarily acreage-only, such as in the Bakken, Marcellus and Niobrara—continue to captivate U.S. and global buyers. What’s it cost to enter these, to renew leases and expand?
- Ward Polzin, Managing Director and Head, A&D, Tudor, Pickering, Holt & Co. Securities Inc.
Most purchases today are being done with cash, as both major and independent oil companies have strong access to debt and equity markets. Meanwhile, some are for stock, such as in the Plains/McMoRan deal in the new-regulation-stricken Gulf of Mexico. What are the unique dynamics driving the “cash v. stock” question today? And, what is the impact of financial buyers, such as KKR's investment in Hilcorp South Texas?
- Scott Richardson, Principal, RBC Richardson Barr
The next emerging play might be a familiar name, such as Mississippi Lime. Horizontal technology and multi-stage fracing are making old vertical plays new again. Where are these conventional formations that are ripe for horizontal surfacing? What forgotten formation might lie beneath your HBP?
- Michael D. Bodino, Head of Energy Research & Senior E&P Analyst, Global Hunter Securities, LLC - Presentation Not Available
Accessing acquisition funds can range from the simple bank loan to the complicated SPAC, depending on your business model and changing costs of capital. Find out what capital is most available and least expensive today and what it will take to tap it. Also, discover how competitors’ access to this capital affects the prices being offered for the assets you seek.
The U.S. Drilling Trust and the New Canadian Royalty Trust
U.S.-based E&Ps, such as Energy Corporation of America and SandRidge Energy Inc., are accessing the royalty-trust method of raising drilling capital. And, Canadian E&Ps are capitalizing on a distinct royalty-trust tax favoritism by buying and developing U.S. properties. What’s the cost of capital and upside for a U.S. trust model and what cost-structure advantages does a Canadian trust have in the U.S. property market?
- Chip Van Os, Managing Director-Investment Banking, E&P, Raymond James & Associates - Presentation Not Available
Energy private-equity remains fully loaded to invest in E&P, both big and small. Some funding is for start-ups; some is for partnership in existing assets, such as KKR’s investment in Hilcorp’s South Texas portfolio. Which firms continue to seek to fund good stories?
- Bill Weidner, Founder, Weidner Advisors LLC
The JVs: What's Next International oil companies have swept onto the scene and flooded the shale plays with billions in capital for partial interests. Have we seen the last of the mega-JVs? Will horizontal conventional plays become targets? Will foreign companies engage in smaller deals with smaller operators?
- Randy King, Managing Director, BofA Merrill Lynch
Energy Lenders’ Price Decks Lenders were in disarray after September 2008. Which are still standing, which never stumbled and what are some new names ready to lead or join the syndicate? And, what are their price decks?
- Jon Goddard, Senior Vice President, A&D, Global Oil & Gas Group,Macquarie Tristone, Macquarie Capital (USA) Inc.
A&D Achievement Award and Roundtable DiscussionA&D Watch and Oil and Gas Investor present this lifetime achievement award to a legendary A&D dealmaker.
- Award winner: Jack Randall and Ken Dewey
Panel & Roundtable Discussion: The Gas Glut & The Liquids-Rich Rush Natural gas is down, thus buying opportunity abounds, but few of these packages are coming onto the market. Oil is in, but owners are holding onto these too, especially now that acreage may be prospective for tackling other formations horizontally. Many producers are taking the organic path to enter new oil plays. Who wants gas, either conventional or unconventional today—and why? And, are liquids-rich property valuations getting too pricey? Oil v. Gas: The Bid/Ask Spread Where are buyer and seller expectations meeting in terms of price for oil-producing properties? For gas-producing properties? And where are seller expectations being exceeded? Here are the details, developed from an analysis of hundreds of transactions, and what to expect when bidding.
- Ken Olive, Chairman and CEO, The Oil & Gas Asset Clearinghouse
Buy Gas Now Contrarian buyers are seeking natural gas properties—both conventional and unconventional—in this depressed gas-price market. And, they’re able to bank their buys at today’s strip too. How?
- Sylvia Barnes, Managing Directors, Head of Energy Banking,Madison Williams and Co.
Need a JV to HBP? Lease Expirations on the Horizon, Play by Play Initial-term lease expirations are approaching in the Marcellus and Eagle Ford, while newer plays—such as the Niobrara and Utica—are under less pressure. Here, an analysis shows where operators may be open to a JV to secure their acreage before expiration, where operators may be under pressure to sell and where competitors in a play may be able to consolidate.
- Ramona K. Hovey, Senior Vice President, Analysis and Consulting, DrillingInfo Inc.
Panel & Roundtable Discussion: Field Reports—How These Producers Are Turning Purchases Into Profit Executives behind some of the top M&A headlines of the past year describe how their targets fit their strategy and how they’re generating a greater return on investment.
- Jack Harper Presentation Not Available, Senior Vice President and Chief of Staff, Concho Resources Inc.
- Lisa Stewart, CEO, Sheridan Production Partners
- Alan Smith, Chief Executive Officer, Quantum Resources/li>
Spotlight: Defining the Exit Window
- David Marcell, Managing Director, A&D Group, BNP Paribas
Roundtable Discussion: The Masters—Their Favorite Deals, The Ones That Got Away, And The Ones They’re Glad Got Away These sage A&D dealmakers tell tales from both sides of major purchases and divestments, how they got it right, how they made them right, and how they knew which ones were wrong.
- Charles C. Stephenson Jr., Co-founder and Chairman, Premier Natural Resources LLC - Presentation Not Available
- Ted Collins, Chairman and CEO, Patriot Resources Partners LLC and Co-Founder, Collins & Ware Inc. - Presentation Not Available
- Forrest Hoglund, Chairman & CEO, SeaOne Maritime Corp.; formerly, Chairman, EOG Resources Inc. - Presentation Not Available
The Deal Bunker: A&D Strategy and Opportunities Conference's 10th Anniversary Champagne Networking Reception
We’re celebrating 10 big years as the industry’s leading and longest-lasting conference bringing upstream A&D professionals together to talk trends, strategies and deal making. Plan to stay on and join us for champagne and cigars as we cut the cake on the beginning of another 10 years of bringing deal makers together.
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