Skip to main content Enercom Conference – Angelo Gordon and Company Investor Presentation | Shale Experts
Loading...
Pm

Enercom Conference – Angelo Gordon and Company

Angelo Gordon and Company · Aug 19, 2015 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Enercom Conference – Angelo Gordon and Company – slide 1
    Matching Money with Opportunity AG Energy EnerCom Private Capital Panel August 2015 Confidential Not For Further Distribution
  2. Enercom Conference – Angelo Gordon and Company – slide 2
    Disclosure This presentation does not constitute an offer to sell, or a solicitation of an offer to buy the limited partnership interests or securities of any funds described herein. Data presented is as of the date hereof unless…
  3. Enercom Conference – Angelo Gordon and Company – slide 3
    Table of Contents I. About Angelo, Gordon & Co. ... 3 II. AG Approach to Energy ..... 7 III. Market Update.. 13 Matching Money with Opportunity 2
  4. Enercom Conference – Angelo Gordon and Company – slide 4
    Section I: About Angelo, Gordon & Co. Matching Money with Opportunity 3
  5. Enercom Conference – Angelo Gordon and Company – slide 5
    Angelo, Gordon & Co. 1988 Company founded 100% Employee owned Three Core Disciplines 27 billion Assets Under Management* Real Private Credit 360+ Employees Estate Equity Headquartered in New York with offices globally Angelo,…
  6. Enercom Conference – Angelo Gordon and Company – slide 6
    Angelo, Gordon & Co. We are entrepreneurial, opportunistic, and add disciplines when they are synergistic to existing strategies Private Credit Real Estate Equity 17.8 bn 9.0 bn 0.7 bn 1988 1988 1998 2008 2013 2014 1993 2005…
  7. Enercom Conference – Angelo Gordon and Company – slide 7
    Angelo, Gordon & Co. Angelo, Gordon AUM Growth* billion 27 Raised significant assets in periods of 24 market distress 21 2002-2003: 3.0 billion 18 2008-2009: 9.0 billion 15 Retained AUM at the height of the recent 12 financial…
  8. Enercom Conference – Angelo Gordon and Company – slide 8
    Section II. Capital Flight Matching Money with Opportunity 7
  9. Enercom Conference – Angelo Gordon and Company – slide 9
    The New Normal More Volatile and Frequent Cycles History Shows Removing a Cartel is Inherently Destabilizing: 1970s Offer a Small Preview 50 Texas RRC Bearish Factors Bullish Factors 40 gives full production Severe price action…
  10. Enercom Conference – Angelo Gordon and Company – slide 10
    No Good Comps: Increasing Illiquidity New activity in the A&D and non-investment grade financing markets has ground to a halt North American Onshore E&P Deal Volume (B) (1) E&P High Yield Issuance 35.0 45 16 12,000 11,300 29.4 40…
  11. Enercom Conference – Angelo Gordon and Company – slide 11
    Energy Capital Markets: Heading for the Hills The energy capital markets have been decimated by the collapse in oil prices, offering both risk and return to investors capable of sorting through the carnage Equity Prices VS. WTI…
  12. Enercom Conference – Angelo Gordon and Company – slide 12
    The Banks: Creating a Need for Non-Bank Direct Loans Energy banks re-determine borrower revolving credit availability semi-annually, in April & October Based upon recent bank pricing surveys and regulatory pressure banks may withdraw…
  13. Enercom Conference – Angelo Gordon and Company – slide 13
    More Bank Credit Rationing to Come 2Q15 bank base case price decks exceeded historical levels by a wide margin relative to WTI strip prices. Bank Base Case Pricing vs. WTI Forward Strip 105% 100% 95% 2009 2010 Base Case/WTI…
  14. Enercom Conference – Angelo Gordon and Company – slide 14
    Section III. AG Approach to the Energy Sector Matching Money with Opportunity 13
  15. Enercom Conference – Angelo Gordon and Company – slide 15
    AG Approach to the Energy Sector Focus on capital preservation and downside protection which most often translates to investing at the top of the capital structure in a senior, secured debt position(1) Extensive research,…
  16. Enercom Conference – Angelo Gordon and Company – slide 16
    AG Investment Professionals: Broad Team Focused on Energy Opportunities Fifteen investment professionals across multiple investment strategies collaborating to identify what we believe to be the most compelling investment opportunities…
  17. Enercom Conference – Angelo Gordon and Company – slide 17
    Energy Opportunities: A Three Pronged Approach Non-Investment Grade Direct Lending Distressed Debt Corporate Credit Dislocated, stressed high yield and Monitoring growing number of Current Status Continued deal flow leveraged…
  18. Enercom Conference – Angelo Gordon and Company – slide 18
    Opportunity Mix Depends on Market Environment We see a broad opportunity set that may materialize in many ways. Low Oil Prices High More Distress Less Distress Distressed Debt Corporate Credit Direct Lending The above is a…
  19. Enercom Conference – Angelo Gordon and Company – slide 19
    Less Direct Lending Competition Direct Lenders Foreign Banks Insurance Companies Investment Banks Foreign Banks Commercial Finance Insurance Companies Companies Foreign Banks Investment Banks Private Equity Funds Insurance…
  20. Enercom Conference – Angelo Gordon and Company – slide 20
    The AG Energy Direct Lending Team Based in Houston, TX Six member investment team, and growing Average experience of 20 years in the energy sector As principal investor or lender, the team has completed 100 senior secured, mezzanine,…
  21. Enercom Conference – Angelo Gordon and Company – slide 21
    Creativity Required If Mattress Mack can write an 85 call option on furniture sales, we can figure this out Matching Money with Opportunity 20
  22. Enercom Conference – Angelo Gordon and Company – slide 22
    Illiquid Strategies Necessary in an Illiquid Time First liens, second liens and mezzanine Originated, syndicated, clubbed-up new issue and secondary market transactions Loans, prepays, production payments, reversionary structures &…
  23. Enercom Conference – Angelo Gordon and Company – slide 23
    Please Call Damon Putman 713-999-4317 David Taylor 713-999-4316 Kemper Ryan 713-999-4319 Paul Gottheim 713-999-4318 Todd Dittmann 713-999-4315 Matching Money with Opportunity 22
  24. Enercom Conference – Angelo Gordon and Company – slide 24
    Contact Information Angelo, Gordon & Co. 245 Park Avenue, 25th Floor New York, NY 10167 1331 Lamar St, Suite 1076 Houston, TX 77010 Matching Money with Opportunity 23
  25. Enercom Conference – Angelo Gordon and Company – slide 25
    www.angelogordon.com Matching Money with Opportunity 24
  26. Enercom Conference – Angelo Gordon and Company – slide 26
    EnerComs The Oil & Gas Conference Private Equity Panel Discussion Scott R. Smetko, CFA Director EnCap Investments L.P. August 20, 2015
  27. Enercom Conference – Angelo Gordon and Company – slide 27
    EnCap Investments L.P. Table of Contents 1. Overview of EnCap Investments L.P. 2. Current Market Environment / Opportunity Set 2
  28. Enercom Conference – Angelo Gordon and Company – slide 28
    Overview of EnCap Investments L.P. 3
  29. Enercom Conference – Angelo Gordon and Company – slide 29
    EnCap Investments L.P. Overview Founded in 1988, EnCap is a leading provider of growth equity to the upstream and midstream sectors of the U.S. oil and gas industry Raised and managed aggregate capital commitments of over 27B across…
  30. Enercom Conference – Angelo Gordon and Company – slide 30
    EnCap Investments L.P. Consistent Track Record of Success Consistent approach and results over the last two decades across multiple hydrocarbon price cycles 166 monetized / fully realized investments which have generated average…
  31. Enercom Conference – Angelo Gordon and Company – slide 31
    EnCap Investments L.P. Organizational Overview 42 total investment staff members with substantial depth, experience and continuity (essentially zero turnover in the last decade) Two dedicated reserves based investment platforms:…
  32. Enercom Conference – Angelo Gordon and Company – slide 32
    EnCap Investments L.P. Flexible, Time-Tested Model EnCap generally contributes 95%+ of equity capital Management Multi-tiered back-in arrangement further aligns managements interests with EnCap EnCap Team EnCap works in partnership…
  33. Enercom Conference – Angelo Gordon and Company – slide 33
    EnCap Investments L.P. How We Create Value Partner with the best management teams in the oil and gas business Long history and deep relationships generate access to top-quality management teams Repeat teams continue to be the main…
  34. Enercom Conference – Angelo Gordon and Company – slide 34
    Current Market Environment / Opportunity Set 9
  35. Enercom Conference – Angelo Gordon and Company – slide 35
    Current Environment Market Trends Significant commodity price decline since September/November 2014 Oil down 50%; natural gas down 30% Declining prices challenging drilling economics and causing rig count decline across U.S. Total…
  36. Enercom Conference – Angelo Gordon and Company – slide 36
    Current Environment EnCaps Response Current market creates uncertainty but opportunity will continue to exist throughout the cycle Throughout its history, EnCap has successfully adapted to changing market dynamics while still adhering…
  37. Enercom Conference – Angelo Gordon and Company – slide 37
    Current Environment Current / Go-Forward Opportunity Set Lender leniency and open capital markets earlier in the year kept many E&Ps from having to sell assets, but EnCap has been able to take advantage of the market by capturing:…
  38. Enercom Conference – Angelo Gordon and Company – slide 38
    Scott R. Smetko, CFA Director EnCap Investments L.P. 3811 Turtle Creek Blvd., Suite 1000 Dallas, Texas 75219 (214) 599-0800 ssmetkoencapinvestments.com www.encapinvestments.com 13
  39. Enercom Conference – Angelo Gordon and Company – slide 39
    Current Themes in Oil & Gas Private Equity Unprecedented Private Equity Capital Focused on U.S. E&P Source: RBC Richardson Barr proprietary database. Note: Certain figures above may represent RBC estimates. 14 (1) Represents gross…
  40. Enercom Conference – Angelo Gordon and Company – slide 40
    Current Themes in Oil & Gas Private Equity Participation Levels Drastically Increased because of Private Equity With more than 85 billion earmarked for U.S. E&P, private equity sponsors and portfolio companies have been eager to deploy…
  41. Enercom Conference – Angelo Gordon and Company – slide 41
    Warburg Pincus Energy Enercoms The Oil & Gas Conference 20 August 2015
  42. Enercom Conference – Angelo Gordon and Company – slide 42
    Warburg Pincus Cameron Smith Energy Group Advisor (Part time consultant November 2011 -- present ) Focus: Assisting in E&P Investment Strategy, Sourcing & Due Diligence High Plains, Rocky Mountains, and Mid-Continent Background:…
  43. Enercom Conference – Angelo Gordon and Company – slide 43
    Warburg Pincus: A Leading Global Private Equity Firm Experienced Industry Long-term, Aligned Interests Investors Specialists Growth Oriented Firm founded in Industry focused Partner with Within the Firm 1966 with deep domain…
  44. Enercom Conference – Angelo Gordon and Company – slide 44
    Warburg Pincus Energy: Background and Strategy History Differentiated Approach to Investing A leader in energy private equity since 1980s Established track record of long-term Since inception, invested and committed 10+ investing…
  45. Enercom Conference – Angelo Gordon and Company – slide 45
    Confidential Warburg Pincus Track Record of Investing Through Commodity Cycles MM Invested 250 525 1,450 1,000 140 120 100 WTI (/bbl) 80 60 40 20 Newport Generation Ventures 2000 2001 2002 2003 2004…
  46. Enercom Conference – Angelo Gordon and Company – slide 46
    Confidential It is an Exciting Time to Invest in Energy Dislocation Available in E&P sector management teams WP Energy Perspectives Technological Rise of international evolution of North supply and demand American shale…
  47. Enercom Conference – Angelo Gordon and Company – slide 47
    Warburg Pincus Energy: A Differentiated Partnership Proposition Oil & Gas Expertise Alignment Multi-decade track record of value creation in O&G No fees management and fund economics aligned Acute understanding of commodity price…

From the store

Browse maps, data & reports in the Shale Experts store