the energy capital conference 2013 show...
TRANSCRIPT
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The Energy Capital Conference 2013 Show Report
Consolidation is coming, and plenty of capital is available to make deals.
However, succession planning for surviving companies needs to take into
account their appropriate strategy, not just personalities, according to
speakers at Oil and Gas Investor’s annual Energy Capital Conference,
held in Houston in mid-June. The event focused on industry trends and
boardroom issues common to all upstream corporations, big and small.
Further consolidation among E&P companies is going to happen,
panelists agreed. “It’s going to be a major part of our business for the next five to 10 years,”
said R. Danny Campbell, president of Henry Resources LLC, Midland. All major basins should see
some consolidations; speakers were keen to focus on the Permian, where well-capitalized
majors (who largely left in the 1980s), have plenty of cash on hand today and are willing to pay
to get back into the booming basin.
Whatever the basin or play, likely acquisition targets will be companies that are cash-
constrained but asset-rich. The buyers, meanwhile, will be well-financed companies in search of
resource plays. “They are all fascinated by these resource plays,” said H. Craig Clark, president
and chief executive of Wishbone Energy Partners LLC, a new private-equity-backed startup
looking for assets.
And when deals are found, larger amounts of capital will be needed to develop the plays – a
dynamic of the acquisitions and divestiture market that has changed in the past 12 to 18
months. “The ability to take a 10,000-acre piece of property, drill five to 10 wells and sell a
bunch of undrilled locations has disappeared,” said Doug Swanson, a partner at EnCap
Investments LP.
Today, properties have to be more developed and need more production data and top-tier
economics.
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But that fact isn’t slowing investing, and a prime example of this can be seen in private equity,
which has fast become a big player. Swanson said he’s seen reports of $28 billion in energy-
focused private equity funds currently in the market, available to finance E&P companies.
Attendees at this year’s conference, meanwhile, also got a glimpse of what some industry
executives think. According to the results of the 11th Survey of Upstream U.S. Energy
Companies commissioned by Grant Thornton in partnership with Hart Energy, and shared with
the audience at the conference, industry leaders worry that natural gas and crude oil prices in
2013 and years to come are stuck in a rut or will fall.
“The number one concern is price uncertainty,” said Brandon Sear, National Energy Practice
Leader, Grant Thornton.
The survey of E&P, midstream and oilfield services executives found respondents do not think
average gas prices of $4 per thousand cubic feet of gas (Mcf) will solidify until 2015.
Whether those speculations come to pass remains to be seen. What we at Hart Energy do know
and can predict is that whatever comes next in this fast-evolving industry, it will be interesting,
and it will be part of the wide range of discussions we have again at next year’s Energy Capital
Conference. We hope you’ll join us then to be a part of it. See you then!
Leslie Haines Editor-in-Chief Oil and Gas Investor Hart Energy
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Did you learn from these informative speakers?
Rick Louden Co-CEO and President Argent Energy Trust
Carin Barth Corporate Director
Bill Barrett Corp. and Western Refining
Michael R. Starzer President & CEO
Bonanza Creek Energy Inc.
Dudley Viles President & CEO Bright Horizon
Resources
Scott L. Joyce Senior Vice President Capital One Energy
Banking
Jordan Marye Managing Director
Denham Capital
John Donovan Founder
Donovan Capital
Steve Antry Chairman & CEO Eagle Energy of
Oklahoma
Stephen C. Beasley Founder and CEO Eaton Group Inc.
Suzanne Paquin Nimocks
Corporate Director EnCana, ArcelorMittal,
Rowan & Owens Corning
Doug E. Swanson Partner
EnCap Investments LP
Robert Watson Jr. CEO
EnerJex Resources Inc.
Brandon Sear Partner
Grant Thornton LLP
Brandon B. Cradeur Managing Director Grant Thornton LLP
R. Danny Campbell President
Henry Resources LLC
Sylvia Barnes Managing Director
and Head KeyBanc Capital
Markets
Mark Ellis Chairman, President &
CEO Linn Energy LLC
Brian N. Thomas Managing Director
Prudential Capital Group
Eric Nielsen Managing Director
Quantum Energy Partners
John Wing Entrepreneur
Serial Entrepreneur
Mitch Kniffin Vice President
Sigma3 Integrated Reservoir Solutions Inc.
Alan R. Huffman Ph.D. Chief Technology Officer
Sigma3 Integrated Reservoir Solutions Inc.
Eric Alfuth CFO
Starboard Resources Inc.
Mike Oestmann CEO
Tall City Exploration LLC
Tim Duncan President & CEO Talos Energy LLC
David Pursell Managing Director, Head of Securities Tudor, Pickering,
Holt & Co.
Matt Steele President & CEO
Ursa Resources Group II LLC
Stephen Moore Economist
The Wall Street Journal
H. Craig Clark President & CEO
Wishbone Energy Partners
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Companies Represented – 192
Activa Resources LLC Adams Resources &
Energy Addax Minerals Agatsu Holdings
Alcorn Exploration AlTreo LLC Alvarez & Marsal Holdings Amegy Bank
Ankor E&P Holdings Corp. Aon International Apache Arabella Petroleum
ArcLight Capital Argent Energy Trust Associated Bank Bank of Texas
Barrier Advisors Bennett Investments BHP Billiton Petroleum Bill Barrett Corp.
BlueRock Energy Partners BNP Paribas Bonanza Creek Energy Inc. BP Energy Co.
Bracewell & Giuliani BreitBurn Energy
Partners Breitling Energy Co.'s
Bright Horizon Resources
Burleson LLP Caltex84 Resources Inc. Calvetti, Ferguson and
Wagner Capital One Bank
Cargill Inc. Castlerock Energy Group
LLC Central Resources Centurion Partners
Cessna CFO Resources Inc. Chart Resources LLC Chestnut E&P
Cholla Petroleum CHR Energy Partners LLC Clarkson Capital Markets Clear Fork Royalty
Cobalt International Energy
Community Trust Bank Crestmark DelTex Capital
Denbury Resources Inc. Denham Capital Devonshire Investors Digital Solid State
Propulsion LLC
Donovan Capital Dontech Etl. Dot Oil LLC Eagle Energy Co. of OK
Eaton Group Inc. Elite Compression
Services Embassy Oil Co.
Embraer Executive Aircraft
EnCana EnCap Investments LP Energy & Exploration
Partners Energy Spectrum
Energy XXI EnerJex Resources Inc. Enertia Software EnerVest Ltd
Enstream Capital Fairways Exploration &
Production LLC Five States Energy
Fivestones Ventures Inc.
Forge Energy Founders Aviation LLC FTI Consulting Future Petroleum Co.
LLC
Global Geophysical Grant Thornton LLP Grenadier Energy Partners GSO Capital Partners
Guggenheim Henry Resources LLC Hess Corp. Holland Services
Hunt Consolidated Energy Iberia Bank Iberia Capital Partners ING Capital LLC
Itech Recycle Solutions America
JPMorgan Chase Kayne Anderson Key Banc Capital
Markets
Knight Resources KPMG Legado Resources Lime Rock Resources
LINN Energy Localingua Longhorn Natural
Resources Looper Reed & McGraw
PC
M1 Energy Capital Macquarie Bank Macquarie Capital Magee Corp.
Maine Pointe LLC Marathon Oil Matrix Oil Corp. MBI Oil and Gas
McElvain Energy Inc. McGriff Seibels &
Williams Merit Energy Co. MexTex Operating Co.
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Michelson Energy Mizuho Securities USA
Inc. Monterey Energy Group LLC
Morgan Stanley Capital Group
Municipal Energy Resources
Murchison Oil & Gas Inc. Navajo Nation Oil and Gas Netherland, Sewell &
Associates Inc.
New Prospect Co. NGP Capital Resources
Co. Oak Hill Investment
Management O'Brien Energy Co.
Occidental Petroleum Offshore Domestic
Group Onewest Bank Opal Resources LLC
Open Choke Capital Management LLC
Opportune LLP Paramount Operating LLC Pareto Securities Inc.
Parkman Whaling LLC PayRock Energy Petro Harvester Oil & Gas Petro Reports
Phillips Energy Partners LLC
Plano Petroleum LLC PLS Inc. PNC Bank
Post Oak Energy Capital Preng & Associates Presco, Inc. Producers Energy
Prudential Capital Group Quantum Energy
Partners Quantum Resources
Management, LLC Questar
R360 Environmental Solutions
Red Willow Production Co.
Relentless Production and Development LLC
Riviera Ensley Energy Advisors
S&B Infrastructure Ltd Sabine Oil & Gas LLC San Pedro Development LLC Scotiabank
Sempra U.S. Gas and Power
SFC Energy Partners Sigma3 Integrated
Reservoir Solutions Inc. Sklar Exploration
Societe Generale Southern Star
Exploration Starboard Resources Inc. Steptoe & Johnson PLLC
Stonepoint Strategic Advisors Inc.
Sulzer Pumps Suntrust Bank Tall City Exploration
Talos Energy LLC Tempus Aircraft Terra Environmental
Technologies Texas Crude Energy LLC
Texas Independent Exploration
The Dernick Co.'s The Hise Co. The Trimountaine
Group LLC
The Wall Street Journal Tradition Midstream THP Partners Tudor, Pickering, Holt &
Co.
TVM Capital UHY Advisors Union Bank URSA Resources
W&T Offshore Inc. Weisser, Johnson & Co. Wells Fargo US Energy Development
Corp.
WildHorse Resources Willis Global Energy Wishbone Energy Partners
LLC ZaZa Energy
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Energy Capital Conference Statistics
Attendees
Total Registered 378
Countries Represented
Canada – Alberta, Ontario Nigeria United States of America
19 U.S. States Represented
California Colorado Connecticut Florida
Illinois Kansas Louisiana Maryland
Massachusetts Nevada New York North Dakota
Ohio Oklahoma Pennsylvania Texas
Utah Virginia West Virginia
7th Annual Energy Capital Conference 2014 – Save the Date
The 7th annual Energy Capital Conference has been expanded to address asset capital,
intellectual capital and financial capital, in Houston, the energy capital. Today's boardroom
discussions focus on preparing for the new landscape in oil and gas. What opportunities and
challenges will come with pervasive consolidation? How can companies prepare the next
tranche of senior leadership? How can margins be improved through drilling efficiencies?
Where can growing companies find the right capital?
Discuss, strategize and network with the best at the Energy Capital Conference. Additional
information, including the agenda and speakers will be available soon. Mark your calendars for
June 9-10, 2014, as the Energy Capital Conference returns to the Omni Houston Hotel.
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Energy Capital Conference 2013 Audience Breakdown
Attendee by Job Function
Attendee by Company Type
Administrative 2%
Consulting 3%
Legal 3%
Engineering Mgmt./
Tech/R&D/Field 7% Sales/Marketing
11% Other/Unspecified
12%
General / Corporate
Management 62%
Service and Supply 11% Oil and Gas
Operator - Public Company
15%
Midstream/ Consulting/Other
18%
Oil and Gas Operator -
Privately Held 24%
Banking/Finance 32%
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2012
Oil and Gas Investor
Excellence Awards
Through triumphs, turmoil or uncertainty the executives who run successful companies cannot be timid. No matter what kind of seas they encounter, they must maintain a steady hand on the tiller and a steady course, keeping their compass fixed on the goals set forth by the board and their senior management teams. So it was in 2012 for these companies and individuals, the award winners in Oil and Gas Investor’s 10th Annual Excellence Awards program. They were nominated by their peers and our readers, selected by the editors and were awarded their trophies during the 6th annual Energy Capital Conference in June.
Executive of the Year Mark Ellis
Chairman, President, CEO Linn Energy LLC
Best Financing of the Year Linn Energy LLC
A&D Deal of the Year Denbury Resources Inc.
Best Discovery Cobalt Energy International Inc.
Best Field Rejuvenation Plano Petroleum LLC
Best Performance of the Year Bonanza Creek Energy Inc.
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Presented at the Energy Capital Conference
Oil and Gas Investor’s Inaugural “Twenty UNDER 40”
The “Twenty UNDER 40” list showcases 20 younger E&P professionals who demonstrate impressive initiative and talent, inspire and motivate colleagues, are engaged with their communities, and are expected to lead the industry in the future.
Eric Alfuth CFO
Starboard Resources
Matt Blomstedt Senior Staff BD
Sabine Oil and Gas
Shawn Canaday VP Finance
Berry Petroleum
Joseph DeWoody President
Clear Fork Royalty
Ian Doiron VP Acquisitions Phillips Energy
Partners
Tim Duncan President & CEO
Talos Energy
Matt Gentry VP BD Engineering
Forge Energy
Lauren Germinario Land Manager
Navajo Nation Oil and Gas Co.
Kate Gibson Attorney
Central Resources
Jason Hoisager President
Arabella Petroleum
Jeff Kummer VP Operations
MBI Oil and Gas
Michael Magilton VP Treasurer
Quantum Resources
Lance Robertson VP Eagle Ford
Operations Marathon Oil Co.
Gregory Robbins VP Corp.
Development Memorial Production
Partners
Josh Rowan Project Services
Support BHP
Bryan Sheffield President
Parsley Energy
Dwayne T. Stewart President
Fairways Exploration Production LLC
Robert Watson CEO
Enerjex
Justin Woody VP Engineering &
Geoscience Questar Corp.
Janet Yang Director of Strategic
Planning and Analysis W&T Offshore
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Photos from 2013 Energy Capital Conference
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