With share prices halved along with oil prices, investing opportunities abound
What’s coming in 2016?
Institutional investors head to Denver Aug. 16-20 to listen to the oil & gas sector’s go-forward strategies
Where is the industry today and where is it heading?
Chart: Nasdaq
After a lengthy pattern of producing and selling $90+ oil, the industry was jolted when OPEC announced its decision to maintain its production rates. The announcement, which came on Thanksgiving Day 2014 in the U.S., sent global commodity prices into a tailspin and energy exploration companies were thrust into a new reality.
Calls for cost containment, creating efficiencies and preserving liquidity replaced the push to borrow money, acquire more acreage and drill baby drill. The majority of North America’s independent E&Ps put the brakes on their future drilling and development plans and cut billions from their 2015 (and 2016) spending plans. Energy fund managers, analysts, hedge funds, private equity groups, investment banks and individual investors are asking “When will the shale boom ramp up again?”
Chart: Baker Hughes
In response to a 50% reduction in oil prices, innovative shale producers created and maximized new drilling and completion technologies to run an “end-around” what some analysts were calling an all-out Saudi-led price war against the shale movement. Energy companies have quickly learned how to produce more oil much more efficiently from their shale operations—even in an environment of vastly reduced capital expenditures and cost slashing. As a result, U.S. production rates have stabilized although rig counts dropped dramatically in the first half of 2015.
Saudi Arabia continues to deny it has targeted the North American shale producers, all the while adding barrels to its own production during the past few months. Meantime, new wild cards have emerged. Iran’s post-sanctions oil production is soon to flow into new global markets, Mexico has invited foreign investment into its energy resource sector, and U.S. liquefied natural gas (LNG) development is accelerating with first cargoes slated for Asia and Europe likely to come out of the U.S. Gulf coast in early 2016.
Featured Speakers will Unravel Today’s Global Energy Picture at The Oil & Gas Conference® 20
Tough questions abound. What do economists and market strategists foresee on the demand side? How long before Mexico’s open door to foreign investment in energy development jumpstarts a renaissance of that country’s production? How long will the shale industry’s successful “produce more with less capital investment” initiatives stay ahead of decline curves? How will Iran’s post-sanctions additions to the world’s oil supply affect the global energy equation? With China’s growth slowing, when will parity return and allow commodities prices to come back?
In addition to the many public and private oil and gas industry presenting companies, a large group of well-known energy experts will try to bring clarity to the complex global energy landscape as featured speakers at EnerCom’s 20th anniversary The Oil & Gas Conference® at the Downtown Denver Westin Hotel, August 16-20:
Jeb Armstrong, Vice President Energy Research, Marwood Group: “From Exports to Rail Cars: Our Outlook for how Washington, D.C., Will Impact Oil & Gas Producers Over the Next Several Years”;
Michael Carey, Chief Economist (North America), Crédit Agricole Corporate and Investment Bank: “Reassessing the Economic Impact of the Oil Price Shock”;
James Constas, Managing Director, EnerCom, Inc.: “Working with $50 Oil when the U.S. is the Unintended Swing Producer”;
Ricardo Garcia-Moreno, Partner, Haynes & Boone: “Mexico’s Energy Reform – What is the Long-Term Opportunity?”;
Art Hogan, Chief Market Strategist, Wunderlich Securities: “Navigating Turbulent Markets”;
Tom Petrie, Chairman, Petrie Partners: “How Today’s Geopolitical Forces Are Trumping Traditional Economic Calculus”;
Katherine Spector, Head of Commodities Strategy for CIBC World Markets: “What a Difference a Year Makes (At Least For Oil): Oil & Gas Medium-term Outlook”;
Sara Vakhshouri, PhD, President, SVB Energy International: “Iran’s Re-integration to the Energy Market after the Deal: Capabilities, Production & Export Policies and Investment Regulations.”
Important Energy Companies are Coming to Denver
The 20th anniversary of EnerCom’s The Oil & Gas Conference® will feature company presentations by management teams from some of North America’s top oil and gas companies, with exclusive Q&A breakout sessions. The conference provides oil and gas industry leaders an opportunity to discuss year-to-date results and outline future plans with institutional investors, private equity investors, industry research analysts, and commercial and investment bankers.
Marcellus/Utica heavy hitter: Range Resources CEO Jeff Ventura. Photo: Oil & Gas 360
Enterprise values of the presenters range from approximately $9 million to $160 billion and market capitalization is widely distributed. Among the 100+ presenting companies are:
Continental Resources (ticker: CLR) and Whiting Petroleum (ticker: WLL), the two largest independent oil producers in the Williston Basin, with enterprise values of $19 billion and $9 billion, respectively;
WPX Energy (ticker: WPX), an active buyer and seller with newly-purchased acreage in the Permian Basin and enterprise value of $4 billion;
Cabot Oil & Gas (ticker: COG), an E&P with competitive Marcellus type curves and rising operations in the Eagle Ford, $13 billion enterprise value;
Cimarex Energy (ticker: XEC), a Permian and Mid-Continent producer with emphasis on the Wolfcamp Shale, enterprise value of $11 billion;
Range Resources (ticker: RRC) and Southwestern Energy (ticker: SWN), two of the largest Marcellus producers, with enterprise values of $10 billion and $14 billion, respectively;
Sanchez Energy (ticker: SN), Eagle Ford and Tuscaloosa Marine Shale operator with an enterprise value of $2 billion;
Cheniere Energy (ticker: LNG), on track to be first to market in the U.S. LNG export arena, enterprise value of $25 billion;
Atlas Energy, LP (ticker: ATLS), a master limited partnership with operations spanning more than 12 plays across the United States, enterprise value of $2 billion;
Core Laboratories (ticker: CLB), a leading oilservice provider of reservoir optimization and production enhancement technologies with a specialty in deepwater applications, $5 billion enterprise value.
Conference Media Coverage
Angie Austin
Oil & Gas 360®, CNBC and Fox Business will provide media coverage from the conference Aug. 17-20. Company presentations will be webcast live from the conference on www.oilandgas360.com. Oil & Gas 360® will provide daily conference updates via “Closing Bell,” its end-of-day email distribution of industry news and closing commodities prices, indices and currency prices.
TV and radio personality Angie Austin will interview presenting company executives and industry experts for Oil & Gas 360® at The Oil & Gas Conference 20, Aug. 17-20.
How to Register for The Oil & Gas Conference® 20
Please visit EnerCom’s The Oil & Gas Conference® website for registration and other conference details.
About EnerCom, Inc.
Founded in 1994, EnerCom, Inc. provides oil and gas branding, marketing and valuation solutions to the entire oil and gas industry. The Company’s professionals have more than 150 years of industry and business experience and a proven track record of success. Headquartered in Denver, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global oil and gas industry. The firm also produces two annual investment conferences.
The Oil & Gas Conference® 20 – Denver, Colorado – August 16-20, 2015
The Oil & Services Conference™ 14 – San Francisco, California – March 9-10, 2016
For more information about EnerCom and its services, please visit http://www.enercominc.com/or call +1 303-296-8834 to speak with an EnerCom consultant.
About Oil & Gas 360®
Oil & Gas 360® (www.oilandgas360.com) is the financially-focused, online industry news outlet of EnerCom, Inc., which recently achieved one million page views. The site delivers industry news updates, feature stories, exclusive interviews and an up-to-the-minute earnings calendar for a global network of oil and gas industry leaders and energy investment professionals. Oil & Gas 360® will provide detailed coverage from The Oil & Gas Conference® 20, including inside coverage from company breakout sessions, live webcasts and one-on-one interviews with keynote speakers and public companies in the industry.
In a recent readership survey, 64% of respondents said they read stories on Oil & Gas 360® daily, another 31% at least once or twice a week. Keep up to date with the fast-paced world of the oil and gas industry by visiting www.oilandgas360.com. Join the energy sector c-suite and the global investment community with a free subscription to “Closing Bell Report,” Oil & Gas 360®’s daily oil and gas financial news delivered directly to your inbox. Oil & Gas 360® is an official Google News provider.
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
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