Deploying the Right Capital for the Job IPAA Private Capital Conference January 29, 2015 Christina Kitchens EVP, Group Director
Deploying the Right Capital for the Job The Form and Fit Driving Motives Capital providers Clients/End users Vetting Reserve-Based Lending Highlight of key structure dynamics Portfolio management practices Current marketplace…
Deploying the Right Capital for the Job Driving Motives Capital providers Things to consider: What drives their decision making How do they make a profit How do they consider risk Who makes the management decisions relevant to your…
Deploying the Right Capital for the Job Driving Motives Clients/End User Things to consider: Intended financing uses and purpose- does this change over time Financing character to key stakeholders preferences and structure Timing of…
Deploying the Right Capital for the Job Vetting Capital Hierarchy Scale Capital sources How do they fundraise Banks funding (Money Center, Regional and Community Banks) Relevant to regional basis Reputation Portfolio Consistency…
Deploying the Right Capital for the Job Vetting Competitiveness How do they identify transactions Capital costs and returns New entry, alternatives and exits Originations versus syndications Pros and Cons At first glance Term…
Deploying the Right Capital for the Job Reserve-Based Lending Highlight of key structure dynamics Portfolio management practices Current marketplace trends
Reserve-Based Lending Highlight of key structure dynamics Is more conservative structure Relationship oriented therefore tend to have a longer ramp up time Guided by policies Collateral evaluation and advances Engineering…
Reserve-Based Lending Current Marketplace Trends Capital competition persist Stress testing and audit Interviewing Proactive management Credit enhancements Right sizing expectations Some tucked-in tails Terms will narrow…
Whats Next 2015 Trends to Follow Interest rate opportunities Project IRR and ROE expectations will not materially diminish Downgrades of companies and credit facilities will increase mid-year High utilization of credit lines for first…
Our Team Energy Team Highlights Energy Team Focus Lending Primarily to Exploration and Production Firms Offers senior debt facilities to Exploration and Production, Midstream, Royalties, and select Energy Services firms for purposes of…