CURRENT STATE OF E&P PRIVATE EQUITY AND DEBT MARKETS IPAA Leaders in Industry Luncheon January 2018 Keith Behrens Managing Director & Group Head Energy Investment Banking 111 CENTER STREET LITTLE ROCK AR 72201 800-643-9691…
Table of Contents STEPHENS INC. CURRENT STATE OF E&P PRIVATE CAPITAL MARKETS PRIVATE EQUITY CAPITAL DISCUSSION PRIVATE DEBT CAPITAL DISCUSSION REPRESENTATIVE PARTNERSHIPS DISCUSSION This presentation was prepared for…
An Independent Financial Services Leader Investment Institutional Wealth Principal Equity Research Public Finance Insurance Banking Sales & Trading Management Investing 1000+ 190+ 11 9 Stephens Employees(1) Investment Banking…
Keith Behrens Energy Investment Banking Keith Behrens Managing Director & Group Head 25+ years experience Mr. Behrens joined Stephens in May 2009 as a Managing Director Prior to joining Stephens, Mr. Behrens was a Co-Founder…
A Dedicated & Growing Energy Practice What Drives The Practice Stephens has been a principal investor in the energy space since 1952 and has a longstanding commitment to assisting 41+ BN 315 MM and advising public and private energy…
Merchant Banking Perspective: Stephens Capital Partners www.stephens.com/private-equity/ Overview Energy Investments Stephens Capital Partners LLC (SCP) is the principal Stephens Natural Resources investing group for Warren Stephens…
Executive Summary: Current State of E&P Private Capital Markets Private Capital activity has picked up dramatically from 2015 / 2016 lows, with Lenders & Sponsors actively looking to deploy pent-up capital into new strategic opportunities…
Private Equity Capital Fundraising Total Capital Raised for All Private Equity Funds1 328 6 Years (2007-2012) 300.0 350 262.6 300 Total Raised ( in Billions) 843.4 Capital Raised ( in Billions) 288 284 250.0 268 232.8 300…
Energy Group Private Capital Coverage Private Equity & Debt Relationships Select Private Equity Transactions The Stephens Energy Team has developed deep relationships 22 MILLION 100 MILLION 300 MILLION with financial sponsors…
2017 Closed U.S. E&P Private Equity Deals Deal Date Company Name Deal Type Deal Size (MM) Investor Sellers 12/22/17 Panther Energy Company PE Growth/Expansion 375.0 Kayne Anderson Capital Advisors --- 12/22/17 Marksmen Energy PIPE 0.5…
2017 Closed U.S. E&P Private Equity Deals (Contd) Deal Date Company Name Deal Type Deal Size (MM) Investor Sellers 3/2/17 Fortuna Resources PE Growth/Expansion --- Och-Ziff Capital Management Group --- 3/2/17 Anadarko Petroleum…
Reversionary Structures Have Been Stable Over Past Several Years Typically structured as common equity -- Management agrees, up-front, to fund/contribute some percentage of the total equity commitment After the Investor achieves a…
Traditional Private Equity Waterfall Structure Comparisons For comparison purposes, the table below displays recent waterfall structures from term sheets Stephens has received representing management teams seeking traditional private…
Executive Summary: Current State of E&P Private Capital Markets Current Private Capital Themes: Private Debt Capital Non-bank lenders looking to finance acquisitions and refinance out traditional reserve-based loans, providing higher…
Unitranche Loan Overview Commentary Unitranche Structure Overview TRADITIONAL(1) UNITRANCHE(1) Unitranche debt blends first and second lien debt financing into a single tranche structured as one term loan and priced at LIBOR plus a…
Recent E&P High Yield Offerings (B/CCC) Issue Ratings Issue Date Issuer S&P Moody's Size Issue Spread Coupon Current YTW Maturity Date Term Security 11/14/17 SRC Energy Inc B+ B3 550 393 bps 6.250% 5.950% 12/1/25 8 Years Sr. Unsecured…
Recent E&P Second Lien Offerings Issue Ratings Launch Date Issuer S&P Moody's Deal Size Spread to LIBOR LIBOR Floor 4/29/15 W&T Offshore Inc B+ NR 300 800 bps 100 bps 10/6/14 Magnum Hunter Resources Corp B B1 340 750 bps 100 bps…
Executive Summary: Current State of E&P Private Capital Markets (Contd) Current Private Capital Themes: Representative Partnership Structures Representative partnerships (DrillCo) allow private investor(s) to invest in development…
DrillCos Overview What is a DrillCo Industry participants that may face challenges investing in their own drilling inventory represent an opportunity for capital providers to own direct interest in new wells via DrillCos With…
DrillCos Overview (Contd) Investment Features of DrillCos Private investors may not be (and typically are not) required to provide up-front capital Potential exit options for investors include: The ability to assess a potential exit…
DrillCos A Financing Alternative The reserve characteristics, taken together with the size and maturity of the issuer, drive the form of capital required for growth RISK SPECTRUM Investment- Related Risks Production Risk…
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