Defined Industry Terms ATAX IRR: After tax internal rate of return. Henry Hub: A natural gas pipeline located in Erath, Louisiana that serves as the official delivery location for futures contracts on the NYMEX. IRR: Internal rate…
Tailwater Introduction Based in Dallas, Texas, Tailwater Capital LLC (Tailwater) is a sophisticated, growth-oriented energy private equity firm focused on providing growth capital to the domestic energy sector o Tailwater was founded…
Industry Value Chain Upstream Geological Midstream Leasing Drilling Production Disposal Gathering Compression Treating Processing Storage Intrastate Downstream Transportation Fractionation Interstate Transportation…
Current Macro Environment
Downward Pressure on Commodity Prices Due to Market Oversupply Historical Crude and Natural Gas Spot Prices 2011 2012 2013 2014 2015 2016 YTD Average WTI ( / Bbl) 94.88 94.05 97.98 93.22 48.67 40.28 Average Henry Hub ( / MMBtu) 4.00…
Global Crude Oil Supply / Demand Imbalance Global Crude Oil Supply Global Crude Oil Demand 18 90 100 Rest of World Supply (MMBbl/d) 95 15 90 US Supply (MMBbl/d) 80 85 12 MMBbl/d 80 9 70 75 70 6 65 60 60 3…
U.S. Activity Slowdown The dramatic decline in oil prices has resulted in a US Rig Count material reduction in activity for onshore U.S. as well as 2000 globally U.S. rig counts have declined by 1,450 rigs, or 75%, since 1800 peak…
Tier 1 Breakevens Remain Compelling CONFIDENTIAL 10 Source: Company data, Credit Suisse estimates *Strip as of 2/19/16. breakeven oil price to 15% ATAX IRR.
Transaction Types Building an Attractive Portfolio Structure Description Acreage is leased directly from mineral owner or assigned from another lessee Acreage Cost associated with lease is paid upfront Acquisitions Working…
Warburg Pincus Energy Enercoms The Oil & Gas Conference 21 Jake Strauss August 2016
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…
Warburg Pincus Energy: Introduction & Overview Energy Practice History Energy Investment Tenets Active in energy sector since the mid- Partner with best-in-class management 1980s teams Original focus on domestic oil and gas Jointly…
Confidential Warburg Pincus Differentiated Approach to Energy Investing Creating and Growing Companies of Scale Conventional (1990 Present) Comfort with Exploration Unconventional (2002 Present) Risk 4
Confidential Warburg Pincus Differentiated Approach to Energy Investing (Contd) MM Invested 525 1,450 2,200 250 140 Track Record 120 of Investing 100 WTI (/bbl) Newport Through 80 Generation Ventures Commodity 60 Cycles 40…
Confidential Global Focus 20 Energy Investments Ex-U.S., 18 Global Professionals London New York Beijing Shanghai Hong Kong Mumbai Singapore Warburg Pincus Offices So Paulo Professionals Partners (Energy-Only /…
Confidential 2012 2014 Strategy: Few Acquisitions; Diversified to Intl & Non-E&P WP XI & WP E Deals WP XI and WP E Equity Deployed Total WP LOEs: 4.1BN 1.2BN Total 120MM of Acquisitions 9% 10% 1.2BN 35% 46% Acquisitions…
Loading...
