monica rovers, head, business development, global energy, tmx
DESCRIPTION
Head of Business Development for Global Energy Monica Rovers' presentation from the 2014 CAPP Scotiabank Investment Symposium.TRANSCRIPT
A Capital OpportunityA Global Market for Oil & Gas CompaniesCAPP ScotiaBank Investment Symposium – April 2014
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Canada and TSX: Strong Fundamentals
Economically stable• Canada is the fifth largest equity
market by float capitalization in the MSCI World Index
• World’s soundest banking system
• Lowest debt-to-GDP among G7• Strong equity culture• ~$2.4 Trillion in market cap• $270 billion in equity capital
raised in last 5 years
Energy and resource rich• 3rd largest oil reserves in the
world• #1 in resource listings
Canadian Markets…Global Leaders
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1stIn Listed Renewable Energy and
Clean Technology Companies
2ndIn New Listings
3rdIn New
International Listings
In Equity Capital Raised
7thIn Market Capitalization
and Value Traded
7th2ndIn Number
of Listed Companies
1stIn Listed Oil & Gas
Companies
1stIn Listed Energy Services
Companies
1stIn Oil & Gas
Analysts
Source: World Federation of Exchanges, 2013, Capital IQ, TSX/TSXV Market Intelligence Group
The World Lists on TSX and TSXV
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TSX and TSXV International Listings by Country/Region
Total International Listings as at December 31 2013= 314TSX = 164 Listings | QMV=$151 B
TSXV = 150 Listings | QMV= $2.8 B
The World Trades on TSX and TSXV
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~40%of daily trading originates from international brokers
7th in the world in value traded
583graduates
+147 M&A*
Market Capitalization, December 31, 2013
Service at All Stages of Growth
Serving all Market Caps A Unique Market Structure with Strong Feeder System
From January 1, 2000 – December 31, 2013
35%29%
36%
94%
5% 1%
<$50 Million $50 - $250 Million >$250 Million
% of TSX Issuers% of TSXV Issuers
535 Issuers
2,015 Issuers
442 Issuers 114
555 Issuers 12
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Access to Capital
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Toronto Stock Exchange and TSX Venture ExchangeTotal Financings (C$ Billions) 1999 – 2013
TSX Venture Exchange commenced operations on November 29, 1999
19.223.1 20.9
25.829.1 28.4
46.241.8
47.6
35.3
60.0
44.1 41.0
50.6
39.9
2.4 1.1 1.4 2.4 4.1 6.1 7.9 11.15.5 5.0
9.8 10.16.0
3.8
19.2 25.5 22.0 27.331.5 32.5
52.249.7
58.8
40.8
64.9
54.0 51.156.5
43.6
1999* 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Average Financing Size:TSX: $67MTSXV: $2M
Oil & Gas by the Numbers
$5.2BEquity Capital Raised
$3.9B TSX + $1.3B TSXV15
New Listings9 TSX + 6 TSXV
$375BMarket Capitalization
$364B TSX + $11B TSXV
369Issuers
110 TSX + 259 TSXV
Number of Financings72 TSX + 174 TSXV
246
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Leading Growth Markets for Oil & Gas
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#1in listed oil & gas
companies globally
32%
of the world’s public oil & gas companies
Number of Listed Oil & Gas Issuers
369
167 147 136
4917 14
TSX/TSXV NYSE/NYSE MKT
ASX LSE/AIM NASDAQ HKEx Oslo Bors
Source: Capital IQ, as at December 31, 2013
Leader in Energy Services
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#1in listed energy services
companies globally
21%
of the world’s public energy services companies
Number of Listed Energy Services Issuers
Source: Capital IQ, as at December 31, 2013
80
59
46
21 1913
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TSX/TSXV NYSE/NYSE MKT
Oslo Bors LSE/AIM NASDAQ HKEx ASX
Access to Capital
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$5.2BRaised by oil and gas
companies in 2013
246Financings in 2013
Oil & Gas Equity Capital Raised on Toronto Stock Exchange and TSX Venture Exchange (C$ Billions)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Secondary Offerings Private Placements IPOs
$4.1B
$10.5B
$11.7B
$5.2B
$10.4B
$9.2B
$8.2B
$11.3B
$10.1B$9.0B
Service at All Stages of Growth
Companies of all sizes receive analyst coverage
Oil and Gas Analyst Coverage200+
Oil & Gas Equity Analysts Cover the Sector
Source: Capital IQ13
Who is Attracting Capital? They have a good story Strong balance sheet Room for growth Strong management team
Are they known in the energy community? Are they known in the investment community: bankers, analysts,
investors? Have they done it before? What is their track record?
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Where Is the Capital Going?
Africa:$789M
USA: $980M
Latin America:$75M
Equity capital raised on TSX and TSXV for oil & gas companies by location of projectSource: TSX/TSXV Market Intelligence Group, 2014
UK/Europe, Middle East and Russia:$595MCanada: $2.7B
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Clean Tech Sector Growth and PerformanceGrowth of Sector:Year-End Market Capitalization (C$B)
Performance:S&P/TSX Renewable Energy and Clean Technology Index
$12.9$18.0 $16.8 $18.1
$21.8
2011 20122009 2010 2013
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2013 Oil & Gas Junior Market Overview Depressed Capital Market Activity Increased Private Equity financing Junior companies traded up approximately 17% in the last half of 2013 A lot of consolidation, only 50% of juniors remain from 2007 Equity financings were down 30% from 2012 5 companies raised 60% of equity capital raised 75% of junior proceeds were raised in the second half of the year More IPO’s in the second half of the year Companies are recapitalizing Decreased M&A activity (67%) and higher cost of capital 25% decrease in flowing oil metrics A lot of assets on the market
17Source: Paradigm Capital17
General Trends Increased interest in yield/dividends Private Equity filled the gap that the sluggish capital markets created Thirst for international projects Increased activity and capital raising for African based projects Capital raising and M&A activity has increased dramatically in 2014 Funds are flowing back into the Oil & Gas sector Preference for oil-weighted E&P issuers More room for midstream and oilfield services Private placements and bought deals
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