2014 Annual Global Energy Conference
Jefferies 2014 Annual Global Energy Conference
Table of Contents
Public Company Profiles
5
Jefferies Biographies
100
Important Disclosures
107
Jefferies 2014 Annual Global Energy Conference
2
Table of Contents (Cont’d)
Alpha Natural Resources, Inc. (NYSE:ANR)
Americas Petrogas, Inc. (TSXV:BOE)
Anadarko Petroleum Corporation (NYSE:APC)
Atwood Oceanics, Inc. (NYSE:ATW)
Baker Hughes Inc. (NYSE:BHI)
Basic Energy Services, Inc. (NYSE:BAS)
BP plc (LSE:BP.)
Breitburn Energy Partners L.P. (NasdaqGS:BBEP)
Bristow Group, Inc. (NYSE:BRS)
Buckeye Partners, L.P. (NYSE:BPL)
Cabot Oil & Gas Corporation (NYSE:COG)
Callon Petroleum Co. (NYSE:CPE)
Calumet Specialty Products Partners (NasdaqGS:CLMT)
Cameron International Corporation (NYSE:CAM)
Carrizo Oil & Gas Inc. (NasdaqGS:CRZO)
Chevron Corporation (NYSE:CVX)
Cobalt International Energy, Inc. (NYSE:CIE)
Comstock Resources Inc. (NYSE:CRK)
ConocoPhillips (NYSE:COP)
CONSOL Energy Inc. (NYSE:CNX)
Contango Oil & Gas Company (AMEX:MCF)
Crestwood Midstream Partners LP (NYSE:CMLP)
Devon Energy Corporation (NYSE:DVN)
Diamond Offshore Drilling, Inc. (NYSE:DO)
Enerplus Corporation (TSX:ERF)
Eni S.p.A. (BIT:ENI)
EnLink Midstream Partners, LP (NYSE:ENLK)
Ensco plc (NYSE:ESV)
Enterprise Products Partners L.P. (NYSE:EPD)
EOG Resources, Inc. (NYSE:EOG)
EV Energy Partners LP (NasdaqGS:EVEP)
FMC Technologies, Inc. (NYSE:FTI)
Forbes Energy Services Ltd. (NasdaqGM:FES)
Forum Energy Technologies, Inc. (NYSE:FET)
Frank's International N.V. (NYSE:FI)
GeoPark Limited (NYSE:GPRK)
Goodrich Petroleum Corp. (NYSE:GDP)
Gulfport Energy Corp. (NasdaqGS:GPOR)
Halliburton Company (NYSE:HAL)
Helix Energy Solutions Group, Inc. (NYSE:HLX)
Hercules Offshore, Inc. (NasdaqGS:HERO)
Jones Energy, Inc. (NYSE:JONE)
Kinder Morgan, Inc. (NYSE:KMI)
Lonestar Resources Limited (ASX:LNR)
Matador Resources Company (NYSE:MTDR)
Nabors Industries Ltd. (NYSE:NBR)
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National Fuel Gas Co. (NYSE:NFG)
Natural Resource Partners LP (NYSE:NRP)
Newfield Exploration Co. (NYSE:NFX)
Newpark Resources Inc. (NYSE:NR)
NiSource Inc. (NYSE:NI)
Noble Corp. (NYSE:NE)
Noble Energy Inc. (NYSE:NBL)
Northern Oil and Gas, Inc. (AMEX:NOG)
NOW Inc. (NYSE:DNOW)
NuStar (NYSE:NS)
NuVista Energy Ltd. (TSX:NVA)
Oasis Petroleum Inc. (NYSE:OAS)
Oceaneering International, Inc. (NYSE:OII)
ONE Gas, Inc. (NYSE:OGS)
ONEOK Inc. (NYSE:OKE)
PDC Energy, Inc. (NasdaqGS:PDCE)
Penn Virginia Corporation (NYSE:PVA)
Petrobras S.A (BOVESPA:PETR4)
Pioneer Energy Services Corp. (NYSE:PES)
Plains All American Pipeline, L.P. (NYSE:PAA)
Precision Drilling Corporation (TSX:PD)
QEP Resources (NYSE:QEP)
Range Resources Corporation (NYSE:RRC)
RigNet, Inc. (NasdaqGS:RNET)
Rowan Companies plc (NYSE:RDC)
RSP Permian, Inc. (NYSE:RSPP)
SAExploration Holdings, Inc. (NasdaqGM:SAEX)
Sanchez Energy Corporation (NYSE:SN)
Schlumberger Limited (NYSE:SLB)
Seventy Seven Energy Inc. (NYSE:SSE)
Spectra Energy Corp. (NYSE:SE)
Statoil ASA (OB:STL)
Stone Energy Corp. (NYSE:SGY)
Superior Energy Services, Inc. (NYSE:SPN)
Swift Energy Co. (NYSE:SFY)
Targa Resources Partners LP (NYSE:NGLS)
Technip SA (ENXTPA:TEC)
TMK IPSCO (LSE:TMKS)
Ultra Petroleum Corp. (NYSE:UPL)
USA Compression Partners LP (NYSE:USAC)
Vantage Drilling Company (AMEX:VTG)
W&T Offshore Inc. (NYSE:WTI)
Weatherford International plc (NYSE:WFT)
Western Gas Partners LP (NYSE:WES)
Williams Companies, Inc. (NYSE:WMB)
Jefferies 2014 Annual Global Energy Conference
3
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Conference Notes
Jefferies 2014 Annual Global Energy Conference
4
Public Company Profiles
Jefferies 2014 Annual Global Energy Conference
5
Conference Notes
Jefferies 2014 Annual Global Energy Conference
6
Alpha Natural Resources, Inc.
Ticker:
ANR
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$1.96
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2002
Location:
10,500
Bristol, VA (United States)
Alpha Natural Resources, Inc., together with its subsidiaries, is engaged in extracting, processing, and marketing thermal and metallurgical coal in Virginia, West Virginia,
Kentucky, Pennsylvania, and Wyoming. As of December 31, 2013, the company operated 81 mines and 25 coal preparation plants in Northern and Central Appalachia and
the Powder River Basin with approximately 4.3 billion tons of proven and probable coal reserves. The company also repairs and resells equipment and parts used in surface
mining and supporting preparation plant operations; manufactures patented particulate scrubbers and filters for underground diesel engine applications; and rebuilds
underground mining equipment. In addition, it owns and operates third-party end-user coal handling facilities; purchases and sells third party coal; sells non-strategic assets,
such as timber, gas, and oil rights; leases and sells non-strategic surface properties and reserves; and provides coal and environmental analysis services. The company serves
electric utilities, steel and coke producers, industrial customers, and energy traders and brokers. Alpha Natural Resources, Inc. was founded in 2002 and is based in Bristol,
Virginia.
Trading Data
(as of Oct 31, 2014)
Financial Projections
($USD)
Share Price
$1.96
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
23.6%
$8.30
1.59
11,724
December
Enterprise Value Calculation
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$4,216.5
173.7
($3.69)
(2.68)
NA
FY 2015E
FY 2016E
$3,800.6
233.4
($2.69)
(2.57)
NA
$3,945.6
406.2
($1.78)
(1.85)
NA
Valuation Metrics (x)
($USD millions)
Market Capitalization (fully-diluted)
$434.0
Enterprise Value / Revenue
0.7x
0.8x
0.8x
Total Debt
3,891.9
Enterprise Value / EBITDA
18.1x
13.5x
7.7x
–
–
1,183.9
$3,142.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
22.4x
NM
NM
16.7x
NM
NM
9.6x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$9.00
60,000
$8.00
50,000
$7.00
Price ($USD)
40,000
$5.00
30,000
$4.00
$3.00
20,000
$2.00
10,000
$1.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
7
Volume (000s)
$6.00
Americas Petrogas Inc.
Ticker:
BOE
Jefferies Rating:
NA
Price:
Exchange:
TSXV
Jefferies Analyst:
Not Covered
Target Price:
$0.40
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
85
Calgary, Canada
Americas Petrogas Inc. is engaged in the exploration, development, and production of oil and gas properties in Argentina. The company explores for conventional and
unconventional oil and gas properties, including shale oil, shale gas and liquids, and tight sands. As of December 31, 2013, it had participating interests in 12 oil and gas
concession blocks totaling approximately 6,000 square kilometers located in Neuquén basin, Argentina. The company, through its subsidiary, GrowMax Agri Corp., also holds
an option to acquire 70% participating interests in the Bayovar potash brine and phosphate concession covering an area of approximately 82,000 hectares located in the
Sechura Desert of Peru. Americas Petrogas Inc. is headquartered in Calgary, Canada.
Trading Data
(as of Oct 31, 2014)
Financial Projections
($CAD)
Share Price
$0.40
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
21.6%
$1.85
0.37
298
December
Enterprise Value Calculation
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2015E
FY 2016E
$35.7
NA
($0.07)
(0.05)
NA
NA
NA
($0.08)
NA
NA
$92.7
Enterprise Value / Revenue
2.1x
2.2x
5.6
Enterprise Value / EBITDA
NA
NA
NA
4.2
–
22.2
$80.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
NA
NM
NM
NA
NM
NA
NA
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$38.3
NA
($0.22)
(0.16)
NA
Valuation Metrics (x)
($CAD millions)
Market Capitalization (fully-diluted)
($CAD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
NA
Price / Volume — Last Twelve Months
$2.00
4,000
$1.80
3,500
$1.60
3,000
Price ($CAD)
2,500
$1.20
$1.00
2,000
$0.80
1,500
$0.60
1,000
$0.40
500
$0.20
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
8
Volume (000s)
$1.40
Anadarko Petroleum Corporation
Ticker:
APC
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$91.78
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1959
Location:
5,700
The Woodlands, TX (United States)
Anadarko Petroleum Corporation is engaged in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Oil and
Gas Exploration and Production; Midstream; and Marketing. The company explores for and produces natural gas, crude oil, condensate, and natural gas liquids (NGLs). It
also operates and provides gathering, processing, treating, and transportation systems and services. In addition, the company sells oil, natural gas, anticipated liquefied
natural gas, and NGLs of third-party purchased volumes. As of December 31, 2013, it had approximately 2.8 billion barrels of oil equivalent of proved reserves. Anadarko
Petroleum Corporation’s asset portfolio includes U.S. onshore resource plays in the Rocky Mountains area, the southern United States, the Appalachian basin, and Alaska;
the deepwater Gulf of Mexico; and in Algeria, Mozambique, Ghana, China, Brazil, Kenya, Côte d’Ivoire, Liberia, Sierra Leone, New Zealand, Colombia, South Africa, and
internationally. The company was founded in 1959 and is headquartered in The Woodlands, Texas.
Trading Data
(as of Oct 31, 2014)
Financial Projections
($USD)
Share Price
$91.78
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
($USD millions, except per share data)
(Consensus, unless otherwise noted)
80.9%
$113.51
73.60
5,197
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$17,100.3
11,358.8
($1.76)
4.88
NA
$16,627.9
10,530.9
$4.51
4.44
NA
$18,870.8
12,363.3
$5.44
5.77
NA
2.9x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$46,482.0
Enterprise Value / Revenue
3.2x
3.3x
14,728.0
Enterprise Value / EBITDA
4.8x
5.2x
4.4x
1,886.0
–
8,335.0
$54,761.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
18.8x
1.3x
20.3x
20.7x
1.4x
16.9x
15.9x
1.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$120.00
50,000
45,000
$100.00
40,000
Price ($USD)
30,000
$60.00
25,000
20,000
$40.00
15,000
10,000
$20.00
5,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
9
Volume (000s)
35,000
$80.00
Atwood Oceanics, Inc.
Ticker:
ATW
Jefferies Rating:
Buy
Price:
$40.65
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$52.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1968
Location:
1,830
Houston, TX (United States)
Atwood Oceanics, Inc., an offshore drilling contractor, is engaged in the drilling and completion of exploratory and developmental oil and gas wells worldwide. As of February
6, 2014, it owned a fleet of 13 mobile offshore drilling units, as well as 3 ultra-deepwater drill ships under construction. The company was founded in 1968 and is
headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$40.65
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
69.5%
$58.46
37.50
1,052
September
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,173.5
542.2
$4.96
4.70
4.69
$1,488.7
767.6
$6.74
6.85
6.95
$1,607.5
782.9
$6.33
6.51
7.00
Valuation Metrics (x)
$2,615.5
Enterprise Value / Revenue
3.4x
2.7x
2.5x
1,468.5
Enterprise Value / EBITDA
7.3x
5.2x
5.1x
–
–
119.2
$3,964.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.2x
8.7x
2.7x
6.0x
5.9x
1.9x
6.4x
6.2x
1.9x
Price / Volume — Last Twelve Months
$70.00
3,000
$60.00
2,500
Price ($USD)
2,000
$40.00
1,500
$30.00
1,000
$20.00
500
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
10
Volume (000s)
$50.00
Baker Hughes Incorporated
Ticker:
BHI
Jefferies Rating:
Buy
Price:
$52.96
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$74.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1972
Location:
61,100
Houston, TX (United States)
Baker Hughes Incorporated supplies oilfield services, products, technology, and systems to the oil and natural gas industry worldwide. The company offers drilling and
evaluation products and services, which include drill bits for performance drilling, hole enlargement, and coring; conventional and rotary steerable systems used to drill wells;
measurement-while-drilling and logging-while-drilling systems to perform reservoir navigation services; drilling optimization services; tools for coil tubing drilling and wellbore
re-entry systems; coring drilling systems; surface logging; emulsion and water-based drilling fluids systems; reservoir drill-in fluids; and fluids environmental services. Its
drilling and evaluation products and services also include wire line services, such as tools for open hole and cased hole well logging to gather data to perform petro physical
and geophysical analysis; reservoir evaluation coring; casing perforation; fluid characterization; production logging; well integrity testing; pipe recovery; and seismic and
micro seismic services. In addition, the company provides completion and production products and services comprising completion systems used to control the flow of
hydrocarbons within a wellbore; wellbore intervention products and services to enhance the performance of existing wellbores; intelligent production system products and
services to monitor and control the production from individual wells or fields; artificial lifts, such as electric submersible pump systems, progressing cavity pump systems,
gas lift systems, and surface horizontal pumping systems to lift oil and water; chemicals and chemical application systems; and cementing, stimulation, and coil tubing
services. Further, it offers industrial products and services to the downstream chemicals, and process and pipeline industries. The company operates in approximately 80
countries. Baker Hughes Incorporated was founded in 1972 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$52.96
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
70.0%
$75.64
47.51
4,465
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$24,424.5
4,685.0
$3.71
3.96
3.94
$25,855.7
5,264.6
$4.80
4.83
4.25
$27,177.8
5,780.1
$5.69
5.53
5.00
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$22,910.4
Enterprise Value / Revenue
1.1x
1.0x
1.0x
4,413.0
Enterprise Value / EBITDA
5.6x
5.0x
4.6x
201.0
–
1,209.0
$26,315.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
14.3x
13.4x
0.9x
11.0x
11.0x
0.8x
9.3x
9.6x
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$80.00
25,000
$70.00
20,000
$50.00
15,000
$40.00
10,000
$30.00
$20.00
5,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
11
Volume (000s)
Price ($USD)
$60.00
Basic Energy Services, Inc.
Ticker:
BAS
Jefferies Rating:
Hold
Price:
$12.90
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$12.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1992
Location:
5,400
Fort Worth, TX (United States)
Basic Energy Services, Inc. provides well site services to oil and natural gas drilling and producing companies in the United States. Its Completion and Remedial Services
segment provides pumping services, such as cementing, acidizing, fracturing, nitrogen, and pressure testing; rental and fishing tools; coiled tubing; snubbing services; thrutubing; cased-hole wireline services; and underbalanced drilling in low pressure and fluid sensitive reservoirs. This segment operates 232 pressure pumping units; and 41 air
compressor packages, including 37 snubbing units, 14 coiled tubing units, and 12 wireline units. The company’s Fluid Services segment is involved in the transportation of
fluids; the production of salt water; the sale and transportation of fresh and brine water; the rental of portable frac and test tanks; the recycling and treatment of wastewater;
the operation of brine source wells and non-hazardous wastewater disposal wells; and the preparation, construction, and maintenance of access roads, drilling locations, and
production facilities. As of December 31, 2013, this segment owned and operated 1,003 fluid service trucks with an average fluid hauling capacity of up to 150 barrels
apiece. Its Well Servicing segment provides services performed with a mobile well servicing rig and ancillary equipment, such as maintenance work, hoisting tools and
equipment required by the operation, and plugging and abandonment services, as well as manufactures and sells workover rigs. As of December 31, 2013, this segment
operated a fleet of 425 well servicing. Its Contract Drilling segment employs drilling rigs and related equipment to penetrate the earth to a desired depth and initiate
production. This segment owns and operates 12 land drilling rigs. The company was formerly known as Sierra Well Service, Inc. and changed its name to Basic Energy
Services, Inc. in 2000. Basic Energy Services, Inc. was founded in 1992 and is headquartered in Fort Worth, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$12.90
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
43.2%
$29.84
11.68
1,812
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,482.0
322.1
$0.48
0.55
0.53
$1,593.7
374.8
$1.28
1.16
0.05
$1,596.6
361.8
$1.27
1.06
0.45
0.9x
Valuation Metrics (x)
$557.1
Enterprise Value / Revenue
1.0x
0.9x
909.6
Enterprise Value / EBITDA
4.4x
3.8x
3.9x
–
–
57.5
$1,409.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
26.6x
23.5x
2.8x
10.1x
11.1x
2.4x
10.2x
12.2x
2.5x
Price / Volume — Last Twelve Months
$35.00
6,000
$30.00
5,000
Price ($USD)
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
12
Volume (000s)
$25.00
BP p.l.c.
Ticker:
BP.
Jefferies Rating:
Buy
Price:
$4.44
Exchange:
LSE
Jefferies Analyst:
Jason Gammel
Target Price:
$5.40
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1889
Location:
79,600
London, United Kingdom
BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products worldwide. The company’s Upstream segment is
engaged in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trade of natural
gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). It also owns and manages crude oil and natural gas pipelines; processing facilities and
export terminals; and LNG processing facilities and transportation, as well as NGL extraction business. The company's Downstream segment is involved in the refining,
manufacture, marketing, transportation, supply, and trade of crude oil; petroleum; petrochemicals products comprising purified terephthalic acid, paraxylene, acetic acid,
and olefins and derivatives, as well as provides related services to wholesale and retail customers. This segment also sells refined petroleum products, such as gasoline,
diesel, aviation fuel, and liquefied petroleum gas (LPG). This segment offers lubricants under Castrol, BP, and Aral brand names to automotive, industrial, marine, aviation,
and energy markets. BP p.l.c. is also involved in alternative energy business, as well as offers shipping and treasury services. The company was founded in 1889 and is
headquartered in London, the United Kingdom.
Trading Data
(as of Oct 31, 2014)
($GBP)
Share Price
$4.44
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($GBP millions, except per share data)
(Consensus, unless otherwise noted)
84.2%
$5.27
4.05
29,285
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$362,850.0
35,669.2
$0.62
0.69
0.74
$336,095.1
37,253.9
$0.76
0.76
0.74
$331,433.4
38,973.8
$0.76
0.81
0.84
Enterprise Value Calculation
($GBP millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$80,960.9
Enterprise Value / Revenue
0.3x
0.3x
0.3x
53,610.0
Enterprise Value / EBITDA
2.9x
2.8x
2.7x
1,076.0
–
31,025.0
$104,621.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
7.2x
6.4x
1.5x
5.8x
5.8x
1.4x
5.8x
5.5x
1.4x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$6.00
120,000
$5.00
100,000
$4.00
80,000
$3.00
60,000
$2.00
40,000
$1.00
20,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
13
Volume (000s)
Price ($GBP)
Price / Volume — Last Twelve Months
Breitburn Energy Partners L.P.
Ticker:
BBEP
Jefferies Rating:
Exchange:
NasdaqGS
Jefferies Analyst:
Q
NA
Price:
Not Covered
Target Price:
$17.29
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2006
Location:
563
Los Angeles, CA (United States)
BreitBurn Energy Partners L.P., an independent oil and gas company, acquires, explores, and develops oil, natural gas liquids (NGLs), and gas properties in the United
States. The company’s oil, NGL, and natural gas properties are primarily located in the Antrim Shale and other non-Antrim formations in Michigan; the Oklahoma Panhandle,
the Permian Basin in Texas; the Evanston, Green River, Wind River, Big Horn, and Powder River Basins in Wyoming; the Los Angeles and San Joaquin Basins in California;
the Sunniland Trend in Florida; and the New Albany Shale in Indiana and Kentucky. As of December 31, 2013, the company had proved reserves of 214.3 million barrels of
oil equivalent. BreitBurn GP, LLC serves as the general partner of BreitBurn Energy Partners L.P. The company was founded in 2006 and is headquartered in Los Angeles,
California.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$17.29
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
74.7%
$23.15
13.20
1,379
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per unit data)
FY 2014E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$776.1
471.5
($0.65)
0.49
NA
FY 2015E
FY 2016E
$1,267.7
726.4
$0.97
0.69
NA
$1,330.1
790.4
$1.35
0.42
NA
3.2x
Valuation Metrics (x)
$2,325.0
Enterprise Value / Revenue
5.6x
3.4x
1,812.1
Enterprise Value / EBITDA
9.2x
5.9x
5.5x
–
193.2
9.0
$4,321.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
35.0x
3.8x
17.8x
24.9x
2.5x
12.8x
41.7x
2.3x
Price / Volume — Last Twelve Months
$25.00
18,000
16,000
$20.00
14,000
Price ($USD)
10,000
8,000
$10.00
6,000
4,000
$5.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
14
Volume (000s)
12,000
$15.00
Bristow Group, Inc.
Ticker:
BRS
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$73.90
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1955
Location:
4,486
Houston, TX (United States)
Bristow Group Inc. provides helicopter services to the offshore energy industry in Europe, West Africa, North America, Australia, and internationally. Its helicopters are used
principally to transport personnel between onshore bases and offshore production platforms, drilling rigs, and other installations, as well as to transport time-sensitive
equipment to these offshore locations. The company also offers helicopter flight training services to commercial pilots and flight instructors, as well as military training
services through its Bristow Academy. In addition, it provides helicopter repair and production support services; and search and rescue services to oil and gas companies.
The company provides its helicopter services to integrated, national, and independent oil and gas companies. As of March 31, 2014, it operated a fleet of 494 aircraft. The
company was formerly known as Offshore Logistics Inc. and changed its name to Bristow Group Inc. in February 2006. Bristow Group Inc. was founded in 1955 and is based
in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Financial Projections
($USD millions, except per share data)
Share Price
$73.90
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
86.2%
$85.70
64.10
323
March
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,900.2
399.9
$4.97
5.00
NA
$2,088.8
479.3
$5.99
5.81
NA
NA
NA
NA
NA
NA
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Valuation Metrics (x)
$2,628.2
Enterprise Value / Revenue
1.8x
1.7x
NA
955.1
Enterprise Value / EBITDA
8.6x
7.2x
NA
8.5
–
133.8
$3,458.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
14.9x
14.8x
2.4x
12.3x
12.7x
2.0x
NA
NA
NA
Price / Volume — Last Twelve Months
$90.00
1,200
$80.00
1,000
$70.00
Price ($USD)
800
$50.00
600
$40.00
$30.00
400
$20.00
200
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
15
Volume (000s)
$60.00
Buckeye Partners, L.P.
Ticker:
BPL
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$75.40
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1886
Location:
99
Houston, TX (United States)
Buckeye Partners, L.P. owns and operates liquid petroleum products pipeline systems in the United States. The company operates through four segments: Pipelines &
Terminals, Global Marine Terminals, Merchant Services, and Development & Logistics. The Pipelines & Terminals segment transports liquid petroleum products, including
gasoline, jet fuel, diesel fuel, heating oil, and kerosene; and refined petroleum products, such as propane and butane, refinery feedstock, and blending components, as well
as crude oil. This segment owns and operates approximately 6,000 miles of pipeline serving approximately 110 delivery locations; and 115 active terminals that provide bulk
storage and throughput services with aggregate storage capacity of approximately 55 million barrels. The Global Marine Terminals segment provides marine terminal
throughput services, marine bulk storage, and other related services through 6 liquid petroleum product terminals located in The Bahamas, Puerto Rico, and St. Lucia in the
Caribbean; and the New York Harbor in the continental United States. The Merchant Services segment is involved in the wholesale distribution of refined petroleum products,
including gasoline; propane; ethanol; biodiesel; and petroleum distillates, such as heating oil, diesel fuel, and kerosene. The Development & Logistics segment offers
operations, pipeline construction management, turn-key operations and maintenance, asset development, and construction services for third-party pipeline and energy assets.
This segment owns and operates 2 underground propane storage caverns with approximately 800,000 barrels of throughput and storage capability in Indiana and Illinois; and
a 30-mile ammonia pipeline and 25 miles of pipeline in Texas. Buckeye GP LLC serves as the general partner of the company. Buckeye Partners, L.P. was founded in 1886
and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$75.40
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
88.8%
$84.91
63.77
647
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$6,791.7
741.4
$3.05
3.12
NA
$6,484.8
865.7
$3.73
3.84
NA
$7,217.8
978.3
$4.48
4.55
NA
Valuation Metrics (x)
$9,499.5
Enterprise Value / Revenue
2.0x
2.0x
1.8x
3,758.2
Enterprise Value / EBITDA
17.9x
15.3x
13.5x
13.4
–
21.9
$13,249.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
24.7x
24.2x
5.1x
20.2x
19.7x
4.3x
16.8x
16.6x
3.8x
Price / Volume — Last Twelve Months
$90.00
6,000
$80.00
5,000
$70.00
Price ($USD)
4,000
$50.00
3,000
$40.00
$30.00
2,000
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
16
Volume (000s)
$60.00
Cabot Oil & Gas Corporation
Ticker:
COG
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$31.10
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1989
Location:
684
Houston, TX (United States)
Cabot Oil & Gas Corporation, an independent oil and gas company, is engaged in the development, exploitation, exploration, production, and marketing of natural gas, crude
oil, and natural gas liquids in the United States. The company primarily focuses on the Marcellus Shale in northeast Pennsylvania with approximately 200,000 net acres in
the dry gas window of the play; and the Eagle Ford Shale in south Texas with approximately 60,000 net acres in the oil window of the play. It also transports, stores, gathers,
and produces natural gas for resale. The company sells its natural gas to industrial customers, local distribution companies, and gas marketers through on and off its pipeline
and gathering system, as well as to intrastate pipelines, natural gas processors, and marketing companies. As of December 31, 2013, it had proved reserves of approximately
5,454 billion cubic feet of natural gas equivalent. The company was founded in 1989 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$31.10
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
74.4%
$41.78
27.75
5,706
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,099.3
1,450.1
$1.02
0.99
NA
$2,452.1
1,656.9
$1.02
1.11
NA
$3,366.1
2,338.9
$1.64
2.00
NA
4.2x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$12,844.9
Enterprise Value / Revenue
6.7x
5.8x
1,612.0
Enterprise Value / EBITDA
9.8x
8.5x
6.0x
–
–
310.0
$14,146.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
30.4x
31.4x
1.1x
30.4x
28.0x
1.0x
18.9x
15.5x
0.7x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$45.00
30,000
$40.00
25,000
$35.00
Price ($USD)
20,000
$25.00
15,000
$20.00
$15.00
10,000
$10.00
5,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
17
Volume (000s)
$30.00
Callon Petroleum Company
Ticker:
CPE
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$6.56
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1950
Location:
94
Natchez, MS (United States)
Callon Petroleum Company is engaged in the acquisition, exploration, development, and production of oil and gas properties properties in the Permian Basin in West Texas.
As of December 31, 2013, its estimated net proved reserves totaled 14.9 million barrel of oil equivalent, including 11.9 million barrels of oil and 17.8 billion cubic feet of
natural gas. The company was founded in 1950 and is headquartered in Natchez, Mississippi.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$6.56
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
54.3%
$12.09
4.77
1,842
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$160.6
106.3
$0.35
0.46
NA
$238.0
162.2
$0.66
0.65
NA
$320.6
230.3
$1.02
1.01
NA
Valuation Metrics (x)
$362.7
Enterprise Value / Revenue
3.3x
2.2x
1.6x
166.5
Enterprise Value / EBITDA
5.0x
3.3x
2.3x
–
0.0
1.2
$528.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.0x
14.4x
1.6x
9.9x
10.1x
1.0x
6.4x
6.5x
0.7x
Price / Volume — Last Twelve Months
$14.00
12,000
$12.00
10,000
Price ($USD)
8,000
$8.00
6,000
$6.00
4,000
$4.00
2,000
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
18
Volume (000s)
$10.00
Calumet Specialty Products Partners, L.P.
Ticker:
CLMT
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGS
Jefferies Analyst:
Not Covered
Target Price:
$26.78
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1916
Location:
1,420
Indianapolis, IN (United States)
Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in two segments, Specialty Products and Fuel
Products. The company is engaged in the production and marketing of crude oil-based specialty products, including lubricating oils, white mineral oils, solvents,
petrolatums, and waxes; and fuel and fuel-related products, such as gasoline, diesel, jet fuel, asphalt, and heavy fuel oils, as well as resells purchased crude oil to third party
customers. Its specialty products are used in various industrial goods, such as metalworking fluids, belts, hoses, sealing systems, batteries, hot melt adhesives, pressure
sensitive tapes, electrical transformers, refrigeration compressors, and drilling fluids; consumer goods, including candles, petroleum jellies, creams, tonics, lotions, paper
cups, chewing gum base, automotive aftermarket car-care products, lamp oils, charcoal lighter fluids, camping fuel, and various aerosol products; and automotive goods,
such as motor oils, greases, transmission fluids, and tires. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P. The company was
founded in 1916 and is headquartered in Indianapolis, Indiana.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$26.78
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
80.4%
$33.30
23.41
313
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$5,461.5
276.7
($0.59)
(0.28)
NA
$5,838.8
407.6
$1.33
1.63
NA
$5,034.0
494.6
$2.46
3.73
NA
0.7x
Valuation Metrics (x)
$1,856.3
Enterprise Value / Revenue
0.6x
0.6x
1,579.7
Enterprise Value / EBITDA
12.5x
8.5x
7.0x
33.5
–
17.6
$3,451.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
5.7x
20.1x
16.4x
3.9x
10.9x
7.2x
3.2x
Price / Volume — Last Twelve Months
$35.00
3,000
$30.00
2,500
Price ($USD)
2,000
$20.00
1,500
$15.00
1,000
$10.00
500
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
19
Volume (000s)
$25.00
Cameron International Corporation
Ticker:
CAM
Jefferies Rating:
Buy
Price:
$59.55
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$77.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1833
Location:
29,000
Houston, TX (United States)
Cameron International Corporation provides flow equipment products, systems, and services worldwide. Its Drilling & Production Systems segment offers systems and
equipment to control pressures and direct flows of oil and gas wells; and designs and manufactures structural components for land and offshore drilling rigs. This segment
provides ram and annular blowout preventers, control systems, drilling risers and valves, choke and kill manifolds, diverter systems, top drives, draw works, mud pumps, pipe
handling equipment, and other rig products; elastomers, API 6A valves, chokes, actuators, and artificial lift technologies; and subsea production systems, subsea processing,
controls, manifolds, and wellheads. The company’s Valves & Measurement segment offers valves and measurement systems to control, direct, and measure the flow of oil
and gas. This segment provides gate, ball, butterfly, double block and bleed, plug and globe, and check valves; and totalizers, turbine meters, flow computers, chart
recorders, ultrasonic flow meters, and sampling systems. Its Process & Compression Systems segment offers process packages for the separation and treatment of impurities.
This segment provides oil and gas separation equipment, heaters, dehydration and desalting units, gas conditioning units, membrane separation and water processing
systems, integral engine-compressors, separable reciprocating compressors, two and four-stroke cycle gas engines, turbochargers, and compressor systems and controls; and
aftermarket services, such as spare parts, technical services, repairs, overhauls, and upgrades. The company serves oil, gas, and process industries through sales and
marketing employees, agents, distributors, and wholesalers. The company was formerly known as Cooper Cameron Corporation and changed its name to Cameron
International Corporation in May 2006. The company was founded in 1833 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$59.55
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
79.5%
$74.89
53.22
2,615
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$10,586.3
1,634.3
$4.00
4.09
4.11
$10,950.4
1,832.0
$4.91
4.91
4.65
$11,406.7
1,996.2
$5.48
5.52
5.40
1.3x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$11,757.9
Enterprise Value / Revenue
1.4x
1.4x
3,212.0
Enterprise Value / EBITDA
9.1x
8.1x
7.4x
1,011.0
–
1,173.0
$14,807.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
14.9x
14.6x
2.0x
12.1x
12.1x
1.8x
10.9x
10.8x
1.6x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$80.00
9,000
$70.00
8,000
7,000
6,000
$50.00
5,000
$40.00
4,000
$30.00
3,000
$20.00
2,000
$10.00
–
10/13
1,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
20
Volume (000s)
Price ($USD)
$60.00
Carrizo Oil & Gas, Inc.
Ticker:
CRZO
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGS
Jefferies Analyst:
Not Covered
Target Price:
$51.94
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1993
Location:
229
Houston, TX (United States)
Carrizo Oil & Gas, Inc., together with its subsidiaries, explores, develops, and produces oil and gas primarily in the United States. It holds interest in oil and gas plays,
including Eagle Ford Shale in south Texas; the Niobrara Formation in Colorado; the Marcellus Shale in Pennsylvania; and the Utica Shale in Ohio. As of December 31, 2013,
the company had a proved crude oil and liquids reserves of 101.5 million barrels of oil equivalent; proved natural gas reserves of 188 billion cubic feet; and operated 253
gross productive oil and gas wells. Carrizo Oil & Gas, Inc. was founded in 1993 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$51.94
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
73.7%
$70.49
38.11
1,120
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$713.5
546.8
$1.62
2.60
NA
$934.3
727.5
$3.79
3.76
NA
$1,264.8
998.1
$5.61
5.38
NA
Valuation Metrics (x)
$2,390.7
Enterprise Value / Revenue
4.8x
3.6x
2.7x
1,021.6
Enterprise Value / EBITDA
6.2x
4.7x
3.4x
–
–
8.6
$3,403.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
32.1x
19.9x
1.9x
13.7x
13.8x
1.4x
9.3x
9.7x
1.0x
Price / Volume — Last Twelve Months
$80.00
7,000
$70.00
6,000
5,000
$50.00
4,000
$40.00
3,000
$30.00
2,000
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
21
Volume (000s)
Price ($USD)
$60.00
Chevron Corporation
Ticker:
CVX
Jefferies Rating:
Buy
Price:
$119.95
Exchange:
NYSE
Jefferies Analyst:
Jason Gammel
Target Price:
$138.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1879
Location:
64,600
San Ramon, CA (United States)
Chevron Corporation, through its subsidiaries, is engaged in petroleum, chemicals, mining, power generation, and energy operations worldwide. The company operates in two
segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction,
transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing
of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and
refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity
petrochemicals and fuel and lubricant additives, as well as plastics for industrial uses. Chevron Corporation is also involved in coal and molybdenum mining operations; cash
management and debt financing activities; insurance operations; real estate activities; and energy services, and alternative fuels and technology businesses. The company
was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in
San Ramon, California.
Trading Data
(as of Oct 31, 2014)
($USD)
Financial Projections
Share Price
$119.95
(Consensus, unless otherwise noted)
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
88.8%
$135.10
106.65
6,432
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
FY 2015E
FY 2016E
$221,644.2
49,257.9
$10.40
10.07
10.28
$215,536.0
47,197.5
$9.59
9.78
9.20
$219,511.0
53,499.8
$10.72
10.92
12.04
1.1x
Valuation Metrics (x)
$227,776.9
Enterprise Value / Revenue
1.1x
1.1x
23,548.0
Enterprise Value / EBITDA
4.8x
5.0x
4.4x
–
–
14,235.0
$237,089.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.5x
11.9x
0.5x
12.5x
12.3x
0.5x
11.2x
11.0x
0.4x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
FY 2014E
Price / Volume — Last Twelve Months
$160.00
18,000
$140.00
16,000
14,000
12,000
$100.00
10,000
$80.00
8,000
$60.00
6,000
$40.00
4,000
$20.00
–
10/13
2,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
22
Volume (000s)
Price ($USD)
$120.00
Cobalt International Energy, Inc.
Ticker:
CIE
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$11.71
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2005
Location:
178
Houston, TX (United States)
Cobalt International Energy, Inc., is engaged in the exploration and production of oil-focused and below-salt exploration prospects. Its project portfolio comprises North
Platte, Heidelberg, and Shenandoah in the deepwater of the U.S. Gulf of Mexico; Cameia, Lontra, Mavinga, Bicuar, and Orca in the offshore Angola; and Diaman in the
offshore Gabon. The company has strategic relationship with TOTAL E&P USA, INC. Cobalt International Energy, Inc. was founded in 2005 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$11.71
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
50.2%
$23.33
9.28
4,326
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
FY 2014E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$0.1
(161.1)
($0.79)
(0.68)
NA
FY 2015E
FY 2016E
$0.1
(171.7)
($0.80)
(0.63)
NA
$1,864.9
(168.5)
($0.83)
(0.55)
NA
Valuation Metrics (x)
$4,830.7
Enterprise Value / Revenue
NM
NM
2.7x
1,888.3
Enterprise Value / EBITDA
NM
NM
NM
–
–
1,712.5
$5,006.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
NM
NM
NM
NM
NM
NM
NM
$25.00
25,000
$20.00
20,000
$15.00
15,000
$10.00
10,000
$5.00
5,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
23
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Comstock Resources, Inc.
Ticker:
CRK
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$11.84
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1919
Location:
131
Frisco, TX (United States)
Comstock Resources, Inc., an independent energy company, acquires, develops, explores, and produces oil and natural gas properties in the United States. Its oil and gas
operations are primarily located in East Texas/North Louisiana and South Texas. The company owns interests in approximately 1,535 producing oil and natural gas wells. As
of December 31, 2013, it had proved reserves of 585 billion cubic feet of natural gas equivalent. The company was founded in 1919 and is headquartered in Frisco, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$11.84
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
40.1%
$29.49
10.70
1,509
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$596.4
467.4
$0.29
0.38
NA
$638.5
500.9
$0.25
0.63
NA
$781.1
645.8
$1.20
1.69
NA
Valuation Metrics (x)
$566.7
Enterprise Value / Revenue
2.6x
2.4x
2.0x
975.2
Enterprise Value / EBITDA
3.3x
3.1x
2.4x
–
–
3.8
$1,538.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
41.0x
31.2x
2.1x
46.7x
18.8x
1.9x
9.9x
7.0x
1.5x
Price / Volume — Last Twelve Months
$35.00
4,500
4,000
$30.00
3,500
Price ($USD)
3,000
$20.00
2,500
$15.00
2,000
1,500
$10.00
1,000
$5.00
–
10/13
500
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
24
Volume (000s)
$25.00
ConocoPhillips
Ticker:
COP
Jefferies Rating:
Hold
Price:
$72.15
Exchange:
NYSE
Jefferies Analyst:
Jason Gammel
Target Price:
$71.35
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1917
Location:
19,200
Houston, TX (United States)
ConocoPhillips explores for, develops, and produces crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Its portfolio includes North
American shale and oil sands assets; legacy assets in North America, Europe, Asia, and Australia; various international developments; and exploration prospects.
ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$72.15
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
82.8%
$87.09
62.74
6,402
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$57,351.2
22,303.9
$6.45
5.78
5.71
$58,307.9
22,293.1
$5.29
5.28
5.75
$63,461.0
24,368.7
$6.28
6.32
4.90
1.6x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$89,338.6
Enterprise Value / Revenue
1.8x
1.8x
21,234.0
Enterprise Value / EBITDA
4.7x
4.7x
4.3x
–
–
6,430.0
$104,142.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.2x
12.5x
1.0x
13.6x
13.7x
1.0x
11.5x
11.4x
0.9x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$100.00
18,000
$90.00
16,000
$80.00
14,000
Price ($USD)
12,000
$60.00
10,000
$50.00
8,000
$40.00
6,000
$30.00
4,000
$20.00
2,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
25
Volume (000s)
$70.00
CONSOL Energy Inc.
Ticker:
CNX
Jefferies Rating:
Buy
Price:
$36.80
Exchange:
NYSE
Jefferies Analyst:
Peter Ward
Target Price:
$48.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1864
Location:
4,633
Canonsburg, PA (United States)
CONSOL Energy Inc., together with its subsidiaries, operates as an integrated energy company in the United States. The company operates in two divisions, Gas and Coal.
The Gas division produces and sells pipeline quality natural gas primarily to gas wholesalers. This division owns rights to extract natural gas in Pennsylvania, West Virginia,
Ohio, and New York from approximately 446,000 net Marcellus Shale acres; controls approximately 109,000 net acres of Utica Shale potential in eastern Ohio, as well as
controls various acres in southwestern Pennsylvania and northern West Virginia that contain the rights to the Utica Shale; and owns rights to extract coalbed methane (CBM)
in Virginia from approximately 267,000 net CBM acres, which cover a portion of its coal reserves in Central Appalachia. This division also owns shallow oil and gas acreage
position of approximately 906,000 net acres primarily in Illinois, Indiana, Kentucky, West Virginia, Pennsylvania, Virginia, and New York; various acres that have Upper
Devonian potential; 243,000 net acres of Chattanooga Shale; and 406,000 net acres of Huron Shale potential in Kentucky, West Virginia, and Virginia. In addition, it
provides midstream gas services, including designing, building, and operating natural gas gathering systems. The Coal division is engaged in the mining, preparation, and
marketing of thermal coal primarily to power generators; and metallurgical coal to metal and coke producers. This division offers thermal, low and high volatile metallurgical,
and other coals. As of December 31, 2013, this division had approximately 3.0 billion tons of proven and probable coal reserves. The company also provides land services,
integrated supply procurement and management services, and terminal and water services; and distributes mining, drilling, and industrial supplies. CONSOL Energy Inc. was
founded in 1864 and is headquartered in Canonsburg, Pennsylvania.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$36.80
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
76.2%
$48.30
31.64
2,475
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$3,731.5
1,091.3
$0.62
0.88
0.94
$4,036.9
1,272.3
$1.22
1.32
1.35
$4,692.5
1,690.0
$2.19
2.10
2.15
2.5x
Valuation Metrics (x)
$8,470.6
Enterprise Value / Revenue
3.1x
2.9x
3,291.5
Enterprise Value / EBITDA
10.6x
9.1x
6.8x
–
–
225.6
$11,536.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
41.9x
3.0x
30.1x
27.9x
2.6x
16.8x
17.5x
1.9x
Price / Volume — Last Twelve Months
$50.00
9,000
$45.00
8,000
$40.00
7,000
Price ($USD)
6,000
$30.00
5,000
$25.00
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
26
Volume (000s)
$35.00
Contango Oil & Gas Company
Ticker:
MCF
Jefferies Rating:
NA
Price:
Exchange:
AMEX
Jefferies Analyst:
Not Covered
Target Price:
$36.57
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1986
Location:
79
Houston, TX (United States)
Contango Oil & Gas Company, an independent natural gas and oil company, explores, develops, produces, and acquires natural gas and oil properties primarily offshore in
the shallow waters of the Gulf of Mexico. The company was founded in 1986 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$36.57
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
72.5%
$50.44
29.80
179
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$301.5
214.8
$0.34
1.92
NA
$324.1
216.1
$1.39
2.01
NA
$386.7
272.2
$3.11
3.11
NA
2.0x
Valuation Metrics (x)
$708.7
Enterprise Value / Revenue
2.6x
2.4x
66.0
Enterprise Value / EBITDA
3.6x
3.6x
2.8x
–
–
–
$774.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
19.1x
0.3x
26.3x
18.2x
0.3x
11.8x
11.8x
0.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$60.00
700
600
$50.00
Price ($USD)
400
$30.00
300
$20.00
200
$10.00
–
10/13
100
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
27
Volume (000s)
500
$40.00
Crestwood Midstream Partners LP
Ticker:
CMLP
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$19.89
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
126
Houston, TX (United States)
Crestwood Midstream Partners LP is engaged in the gathering, processing, treating, compression, storage, and transportation of natural gas; storage and transportation of
natural gas liquids (NGLs); and gathering, storage, and terminalling of crude oil in the United States. The company operates in three segments: Gathering and Processing,
NGL and Crude Services, and Storage and Transportation. The Gathering and Processing segment provides gathering, compression, treating, and processing services to
producers in various unconventional resource plays. This segment owns and controls natural gas facilities with approximately 2.5 billion cubic feet of natural gas/per day
(Bcf/d) of gathering capacity; 471 million cubic feet of natural gas/per day of processing capacity; 41 Bcf of working gas storage capacity, and 1.0 Bcf/d of firm transmission
capacity. The NGL and Crude Services segment operates crude oil gathering systems and rail terminals; and provides integrated supply and logistics solutions to producers,
refiners, and other customers. This segment owns natural gas liquids facilities with approximately 1.7 million barrels of storage capacity. The Storage and Transportation
segment operates natural gas storage facilities and transportation pipelines in the Northeast in or near the Marcellus Shale. This segments facilities offer 41 Bcf of storage
capacity and approximately 1.0 Bcf/d of transportation capacity to producers, utilities, marketers, and other customers. Crestwood Midstream Partners LP is headquartered in
Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$19.89
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
79.7%
$24.95
16.85
641
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$2,694.0
450.4
$0.29
0.16
NA
$3,247.5
564.2
$0.48
0.57
NA
$4,615.3
644.2
$0.62
0.69
NA
1.3x
Valuation Metrics (x)
$3,738.4
Enterprise Value / Revenue
2.2x
1.9x
1,872.8
Enterprise Value / EBITDA
13.4x
10.7x
9.4x
141.4
294.8
17.3
$6,030.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
4.2x
41.2x
34.7x
3.3x
32.2x
28.8x
2.9x
Price / Volume — Last Twelve Months
$30.00
20,000
18,000
$25.00
16,000
Price ($USD)
12,000
$15.00
10,000
8,000
$10.00
6,000
4,000
$5.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
28
Volume (000s)
14,000
$20.00
Devon Energy Corporation
Ticker:
DVN
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$60.00
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1971
Location:
5,900
Oklahoma City, OK (United States)
Devon Energy Corporation, an independent energy company, is engaged primarily in the exploration, development, and production of oil, natural gas, and natural gas liquids.
The company holds interests in various properties located in Anadarko Basin, Barnett Shale, Mississippian-Woodford Trend, Permian Basin, Rockies, and other regions in the
United States. It also owns oil and gas properties in Canada. As of December 31, 2013, the company had 701 MMBoe of proved undeveloped reserves. It also operates
approximately 24,000 wells. In addition, Devon Energy Corporation offers marketing and midstream services, such as gathering, compression, treating, processing,
fractionation, and marketing services to the company and other third parties. Devon Energy Corporation was founded in 1971 and is headquartered in Oklahoma City,
Oklahoma.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$60.00
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
74.4%
$80.63
53.34
3,518
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$17,063.8
7,174.2
$5.00
5.30
NA
$15,771.2
7,430.2
$5.31
5.59
NA
$16,321.9
8,657.1
$6.57
6.87
NA
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$24,546.0
Enterprise Value / Revenue
2.3x
2.5x
2.4x
12,355.0
Enterprise Value / EBITDA
5.5x
5.4x
4.6x
4,585.0
–
1,707.0
$39,779.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
12.0x
11.3x
1.7x
11.3x
10.7x
1.7x
9.1x
8.7x
1.4x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$90.00
16,000
$80.00
14,000
$70.00
12,000
Price ($USD)
10,000
$50.00
8,000
$40.00
6,000
$30.00
4,000
$20.00
2,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
29
Volume (000s)
$60.00
Diamond Offshore Drilling, Inc.
Ticker:
DO
Jefferies Rating:
Hold
Price:
$37.71
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$41.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1989
Location:
5,500
Houston, TX (United States)
Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry world wide. The company provides drilling services in ultra-deepwater, deepwater,
and mid-water; and non-floater or jack-up markets. Its fleet consists of 45 offshore drilling rigs comprising 33 semisubmersibles, of which 2 are under construction; 7 jackups; and 5 dynamically positioned drillships, of which 3 are under construction. Its customers include independent oil and gas companies, and government-owned oil
companies. The company was founded in 1989 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$37.71
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
60.6%
$62.25
32.71
1,861
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,824.4
1,087.4
$2.80
3.15
2.95
$3,153.2
1,233.5
$3.15
3.34
3.90
$3,043.8
1,065.2
$2.09
2.24
3.55
2.1x
Valuation Metrics (x)
$5,171.9
Enterprise Value / Revenue
2.2x
2.0x
2,244.4
Enterprise Value / EBITDA
5.8x
5.1x
6.0x
–
–
1,069.0
$6,347.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
13.5x
12.0x
2.1x
12.0x
11.3x
1.8x
18.0x
16.8x
2.1x
Price / Volume — Last Twelve Months
$70.00
6,000
$60.00
5,000
Price ($USD)
4,000
$40.00
3,000
$30.00
2,000
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
30
Volume (000s)
$50.00
Enerplus Corporation
Ticker:
ERF
Jefferies Rating:
NA
Price:
Exchange:
TSX
Jefferies Analyst:
Not Covered
Target Price:
$16.14
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1986
Location:
707
Calgary, Canada
Enerplus Corporation, together with subsidiaries, is engaged in the exploration and development of crude oil and natural gas in the United States and Canada. The company
has interests in approximately 161,000 net acres of lands comprising approximately 76,000 net acres targeting the Stacked Mannville zones and 85,000 net acres targeting
the Duvernay formation in the Deep Basin region, Canada. It has interests in 73,000 net acres located primarily in Dunn and McKenzie counties in North Dakota;
approximately 60,000 net acres located in Pennsylvania; and 23,000 acres in West Virginia and Maryland. As of December 31, 2013, the company’s proved plus probable
gross reserves of 150,029 thousand barrels (Mbbls) of light and medium crude oil; 42,066 Mbbls of heavy crude oil; 14,361 Mbbls of natural gas liquids; 564,725 million
cubic feet (MMcf) of natural gas; and 600,861 MMcf of shale gas. Enerplus Corporation was founded in 1986 and is headquartered in Calgary, Canada.
Trading Data
(as of Oct 31, 2014)
($CAD)
Share Price
$16.14
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
59.7%
$27.05
15.75
863
December
Enterprise Value Calculation
($CAD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($CAD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,848.3
917.0
$0.83
0.91
NA
$1,928.8
992.0
$1.01
1.17
NA
$2,040.1
1,072.4
$0.84
1.14
NA
2.1x
Valuation Metrics (x)
$3,315.5
Enterprise Value / Revenue
2.4x
2.3x
1,069.6
Enterprise Value / EBITDA
4.8x
4.4x
4.1x
–
–
2.0
$4,383.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.4x
17.8x
1.2x
16.0x
13.8x
1.1x
19.2x
14.1x
1.0x
Price / Volume — Last Twelve Months
$30.00
2,500
$25.00
2,000
Price ($CAD)
1,500
$15.00
1,000
$10.00
500
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
31
Volume (000s)
$20.00
Eni S.p.A.
Ticker:
ENI
Jefferies Rating:
Hold
Price:
$16.73
Exchange:
BIT
Jefferies Analyst:
Marc Kofler
Target Price:
$15.50
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1953
Location:
82,289
Rome, Italy
Eni S.p.A., together with its subsidiaries, is engaged in the exploration and production, gas and power, refining and marketing, engineering and construction, and chemicals
and other activities. The company is involved in the oil and natural gas exploration, and field development and production activities, as well as liquefied natural gas (LNG)
operations in 42 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Russia, Algeria, Australia,
Venezuela, Iraq, and Mozambique. It also supplies, trades, and markets gas, LNG, and electricity; transports international gas; supplies crude oil; and refines and markets
petroleum products at retail and wholesale markets primarily in Italy and rest of Europe. In addition, the company is engaged in the commodity risk management and assetbacked trading activities; and production of various chemicals, including olefins and aromatics, basic intermediate products, polyethylene, polystyrenes, and elastomers in
Italy and Western Europe. Further, it provides a range of engineering, drilling, and construction services to the oil and gas industry, and downstream refining and
petrochemical sectors, primarily in the field of EPC contracts offshore and onshore for the construction and installation of fixed platforms, sub-sea pipe laying and floating
production systems, and onshore industrial complexes. The company has strategic agreements with Repsol S.A. and Petroleos de Venezuela, S.A. for the exploitation of the
Perla field in Venezuela. Eni S.p.A. was founded in 1953 and is headquartered in Rome, Italy.
Trading Data
(as of Oct 31, 2014)
($EUR)
Share Price
$16.73
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($EUR millions, except per share data)
(Consensus, unless otherwise noted)
81.8%
$20.46
15.31
18,699
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$108,075.9
21,741.0
$1.27
1.23
1.13
$107,220.4
22,773.1
$1.33
1.35
1.16
$110,066.7
24,617.9
$1.54
1.52
1.47
0.7x
Enterprise Value Calculation
($EUR millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$60,465.0
Enterprise Value / Revenue
0.7x
0.7x
26,400.0
Enterprise Value / EBITDA
3.6x
3.5x
3.2x
2,673.0
–
10,601.0
$78,937.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
13.2x
13.6x
1.2x
12.6x
12.4x
1.2x
10.9x
11.0x
1.1x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$25.00
50,000
45,000
$20.00
40,000
Price ($EUR)
30,000
25,000
$10.00
20,000
15,000
$5.00
10,000
5,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
32
Volume (000s)
35,000
$15.00
EnLink Midstream Partners, LP
Ticker:
ENLK
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$30.00
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1992
Location:
817
Dallas, TX (United States)
EnLink Midstream Partners, LP, through its subsidiary, EnLink Midstream Operating, LP, provides midstream energy services. It engages in the gathering, transmission,
processing, fractionation, and marketing natural gas, natural gas liquids (NGLs), crude oil, and condensate. The company connects the wells of natural gas producers to its
gathering systems; processes natural gas for the removal of NGLs; fractionating NGLs into purity products; marketing those purity products; and transporting natural gas. It
also purchases natural gas from natural gas producers and other supply sources, and sells that natural gas to utilities, industrial consumers, other marketers, and pipelines.
In addition, the company provides crude oil, condensate, and brine services to producers. As of September 29, 2014, it operated approximately 7,400 miles of gathering and
transportation pipelines, 13 processing plants with a net processing capacity of 3.4 billion cubic feet per day, 7 fractionators with a net fractionation capacity of 252,000
barrels per day, as well as barge and rail terminals, product storage facilities, brine disposal wells, and a crude oil trucking fleet. The company was formerly known as
Crosstex Energy L.P. and changed its name to EnLink Midstream Partners, LP in March 2014. EnLink Midstream GP, LLC serves as the general partner of the company.
EnLink Midstream Partners, LP was founded in 1992 and is based in Dallas, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$30.00
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
84.4%
$35.54
23.06
463
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$3,669.1
520.8
$0.82
0.70
NA
$4,581.9
736.8
$1.07
0.98
NA
$3,643.5
869.4
$1.15
1.09
NA
Valuation Metrics (x)
$6,938.3
Enterprise Value / Revenue
2.6x
2.1x
2.7x
1,575.2
Enterprise Value / EBITDA
18.6x
13.1x
11.1x
1,152.6
–
–
$9,666.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
36.6x
42.7x
3.0x
27.9x
30.8x
2.1x
26.2x
27.5x
1.8x
Price / Volume — Last Twelve Months
$40.00
12,000
$35.00
10,000
8,000
$25.00
$20.00
6,000
$15.00
4,000
$10.00
2,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
33
Volume (000s)
Price ($USD)
$30.00
Ensco plc
Ticker:
ESV
Jefferies Rating:
Hold
Price:
$40.59
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$54.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1975
Location:
9,000
London, United Kingdom
Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. The company operates through three segments: Floaters, Jackups, and Other. The
company owns and operates an offshore drilling rig fleet of approximately 74 rigs, including 10 drill ships, 13 dynamically positioned semisubmersible rigs, 6 moored
semisubmersible rigs, and 45 jackup rigs. Its drilling rigs are located in the North and South America, the Middle East and Africa, the Asia Pacific rim, and Europe and
Mediterranean regions. The company also offers management services on rigs owned by third-parties. It serves government-owned and independent oil and gas companies.
Ensco plc was founded in 1975 and is headquartered in London, the United Kingdom.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$40.59
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
65.2%
$62.25
35.96
4,458
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$4,845.7
2,393.3
($0.52)
6.09
5.85
$4,882.5
2,252.2
$5.16
5.21
5.50
$5,028.7
2,209.2
$4.82
4.77
5.25
Valuation Metrics (x)
$9,510.6
Enterprise Value / Revenue
2.9x
2.9x
2.8x
5,957.7
Enterprise Value / EBITDA
6.0x
6.3x
6.5x
12.6
–
1,219.0
$14,261.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
6.7x
2.5x
7.9x
7.8x
2.6x
8.4x
8.5x
2.7x
$70.00
14,000
$60.00
12,000
$50.00
10,000
$40.00
8,000
$30.00
6,000
$20.00
4,000
$10.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
34
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Enterprise Products Partners L.P.
Ticker:
EPD
Jefferies Rating:
Hold
Price:
$36.90
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$40.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1968
Location:
1,900
Houston, TX (United States)
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and
refined products in the United States and internationally. Its NGL Pipelines & Services segment provides natural gas processing and related NGL marketing services, as well
as import and export terminal services. This segment operates NGL pipelines aggregating approximately 19,400 miles; NGL and related product storage facilities; and 15
NGL fractionators. The company’s Onshore Natural Gas Pipelines & Services segment operates approximately 19,600 miles of onshore natural gas pipeline systems to gather
and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. This segment also leases salt dome natural gas storage facilities; and markets natural
gas. Its Onshore Crude Oil Pipelines & Services segment operates approximately 4,600 miles of onshore crude oil pipelines; and markets crude oil. This segment’s pipelines
gather and transport crude oil primarily in New Mexico, Oklahoma, and Texas to refineries, centralized storage terminals, and connecting pipelines. The company’s Offshore
Pipelines & Services segment operates approximately 2,300 miles of offshore natural gas and crude oil pipelines and 6 offshore hub platforms in the northern Gulf of Mexico
offshore Texas, Louisiana, Mississippi, and Alabama. Its Petrochemical & Refined Products Services segment operates propylene fractionation and related operations,
including 680 miles of pipelines; butane isomerization complex and related pipeline assets; and octane enhancement and high purity isobutylene production facilities, as
well as refined products pipelines of 4,200 miles, as well as offers related marketing and marine transportation services. The company was founded in 1968 and is based in
Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$36.90
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
89.2%
$41.38
30.29
2,922
December
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$51,889.7
5,262.8
$1.54
1.52
1.42
$56,627.7
5,681.7
$1.63
1.64
1.55
$59,062.6
6,041.8
$1.67
1.67
1.74
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$71,318.1
Enterprise Value / Revenue
1.7x
1.6x
1.5x
18,365.5
Enterprise Value / EBITDA
17.0x
15.7x
14.8x
–
–
262.4
$89,421.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
24.0x
24.2x
3.5x
22.7x
22.4x
3.2x
22.1x
22.1x
3.0x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$45.00
20,000
$40.00
18,000
$35.00
16,000
Price ($USD)
12,000
$25.00
10,000
$20.00
8,000
$15.00
6,000
$10.00
4,000
$5.00
–
10/13
2,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
35
Volume (000s)
14,000
$30.00
EOG Resources, Inc.
Ticker:
EOG
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$95.05
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1985
Location:
2,800
Houston, TX (United States)
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil and natural gas. As of December 31, 2013, it had total estimated
net proved reserves of 2,119 million barrels of oil equivalent of which 901 million barrels (MMBbl) were crude oil and condensate reserves, and 377 MMBbl were natural
gas liquids reserves; and 5,045 billion cubic feet were natural gas reserves. The company operates primarily in the United States, Canada, the Republic of Trinidad and
Tobago, the United Kingdom, the People's Republic of China, and the Argentine Republic. EOG Resources, Inc. was founded in 1985 and is headquartered in Houston,
Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$95.05
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
79.9%
$118.89
78.01
4,847
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$16,708.2
9,154.4
$5.12
5.41
NA
$17,684.2
9,677.1
$5.36
5.50
NA
$21,183.1
11,804.4
$7.17
6.72
NA
2.7x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$52,035.7
Enterprise Value / Revenue
3.4x
3.2x
5,909.7
Enterprise Value / EBITDA
6.2x
5.9x
4.8x
–
–
1,230.1
$56,715.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
18.6x
17.6x
0.6x
17.7x
17.3x
0.6x
13.3x
14.1x
0.5x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$140.00
14,000
$120.00
12,000
$100.00
10,000
$80.00
8,000
$60.00
6,000
$40.00
4,000
$20.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
36
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
EV Energy Partners, L.P.
Ticker:
EVEP
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGS
Jefferies Analyst:
Not Covered
Target Price:
Employees:
NM
Location:
$32.45
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
2006
Houston, TX (United States)
EV Energy Partners, L.P. is engaged in the acquisition, development, and production of oil and natural gas properties in the United States. The company operates in two
segments, Exploration and Production, and Midstream. Its properties are located in the Barnett Shale; the Appalachian Basin; the Mid–Continent areas in Oklahoma, Texas,
Arkansas, Kansas, and Louisiana; the Monroe Field in Northern Louisiana; Central and East Texas; the San Juan Basin; Michigan; and the Permian Basin. As of December
31, 2013, the company had estimated net proved reserves of 13.1 million barrels of oil, 819.7 billion cubic feet of natural gas, and 48.9 million barrels of natural gas
liquids. EV Energy GP, L.P. serves as the general partner of EV Energy Partners, L.P. The company was founded in 2006 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$32.45
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
77.3%
$41.97
27.10
265
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per unit data)
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$366.1
239.0
$0.41
1.12
NA
$419.1
298.0
$1.63
1.54
NA
$508.4
348.0
$1.98
2.37
NA
5.2x
Valuation Metrics (x)
$1,576.2
Enterprise Value / Revenue
7.3x
6.4x
1,124.3
Enterprise Value / EBITDA
11.2x
9.0x
7.7x
(13.2)
–
18.7
$2,668.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
28.9x
4.7x
19.9x
21.1x
3.8x
16.4x
13.7x
3.2x
$45.00
900
$40.00
800
$35.00
700
$30.00
600
$25.00
500
$20.00
400
$15.00
300
$10.00
200
$5.00
–
10/13
100
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
37
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
FMC Technologies, Inc.
Ticker:
FTI
Jefferies Rating:
Hold
Price:
$56.04
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$57.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
2000
Location:
19,300
Houston, TX (United States)
FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. Its Subsea Technologies segment offers subsea systems for the offshore production
of crude oil and natural gas, as well as installation and workover tools, service technicians for installation assistance, and field support for commissioning, intervention, and
maintenance of its subsea systems. This segment also provides electric and hydraulic work-class remotely operated vehicle systems, tether-management, launch and
recovery, remote manipulator arms, and modular control systems for subsea applications, as well as support services for subsea control systems for subsea exploration and
production; and multiphase and wetgas meters for the production and surface well testing, reservoir monitoring, remote operation, process monitoring and control, and
artificial lift optimization. The company’s Surface Technologies segment offers surface wellheads for standard, custom-engineered, and critical service applications; fluid
control products for the well completion and stimulation activities; and fracturing flowback, cased hole electric wireline and slickline, specialty logging, pressure transient
analysis, optimization and swabbing services for exploration companies in the oil and gas industry. Its Energy Infrastructure segment offers measurement systems for the
custody transfer of crude oil, natural gas, and refined products, as well as design, engineering, project management, training, commissioning, and aftermarket services; fluid
loading and transfer systems to the oil and gas, petrochemical, and chemical industries; systems that separate production flows from wells into oil, gas, sand, and water; and
automation, control, and information technology for the oil and gas, and other industries. The company was founded in 2000 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$56.04
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
87.7%
$63.92
47.58
1,977
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$7,903.9
1,314.7
$2.95
2.86
2.89
$8,577.4
1,490.6
$3.37
3.39
3.55
$9,025.2
1,602.1
$3.71
3.75
4.30
1.5x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$13,104.8
Enterprise Value / Revenue
1.8x
1.6x
1,347.0
Enterprise Value / EBITDA
10.6x
9.4x
8.7x
20.1
–
511.5
$13,960.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.0x
19.6x
1.0x
16.6x
16.5x
0.9x
15.1x
14.9x
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$70.00
9,000
8,000
$60.00
7,000
Price ($USD)
6,000
$40.00
5,000
$30.00
4,000
3,000
$20.00
2,000
$10.00
–
10/13
1,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
38
Volume (000s)
$50.00
Forbes Energy Services Ltd.
Ticker:
FES
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGM
Jefferies Analyst:
Not Covered
Target Price:
$2.88
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
2,230
Alice, TX (United States)
Forbes Energy Services Ltd., an independent oilfield services contractor, provides a range of well site services for oil and natural gas drilling and producing companies to
develop and enhance the production of oil and natural gas in the United States. The company operates in two segments, Well Servicing and Fluid Logistics. The Well
Servicing segment offers well maintenance services, including remedial repairs, and removal and replacement of downhole production equipment; well workovers, such as
downhole repairs, re-completions, and re-perforations; completion and swabbing services; plugging and abandoning services; and oil and natural gas production tubing
testing services. As of December 31, 2013, it utilized a fleet of 167 owned well servicing rigs, which included 157 workover rigs and 10 swabbing rigs; 5 coiled tubing
spreads; 9 tubing testing units; and related assets and equipment. The Fluid Logistics segment provides, transports, stores, and disposes various drilling and produced fluids
used in oil and natural gas production. This segment is involved in fluid hauling activities; the disposal of salt water, and incidental non-hazardous oil and natural gas wastes
produced from oil and natural gas wells; rental of fluid storage tanks for use by oilfield operators to store various fluids at wellsites; and sale and transportation of various
chemicals and fluids used in drilling, completion, and workover operations for oil and natural gas wells. It owned or leased 480 fluid service vacuum trucks, trailers, and
other hauling trucks; operated 24 disposal wells; and owned a fleet of 3,208 fluid storage tanks. The company has operations in the onshore oil and natural gas producing
regions of Texas, as well as in Mississippi and Pennsylvania. Forbes Energy Services Ltd. is headquartered in Alice, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$2.88
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
50.1%
$5.75
2.80
30
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
$453.8
78.9
($0.23)
(0.26)
NA
FY 2015E
FY 2016E
$488.1
89.2
$0.13
(0.02)
NA
$533.5
102.6
$0.34
0.34
NA
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$62.8
Enterprise Value / Revenue
0.8x
0.7x
0.7x
Total Debt
295.0
Enterprise Value / EBITDA
4.5x
4.0x
3.5x
–
14.6
16.8
$355.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
3.7x
22.2x
NM
3.3x
8.5x
8.5x
2.9x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$6.00
800
700
$5.00
600
Price ($USD)
500
$3.00
400
300
$2.00
200
$1.00
–
10/13
100
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
39
Volume (000s)
$4.00
Forum Energy Technologies, Inc.
Ticker:
FET
Jefferies Rating:
Hold
Price:
$27.30
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$30.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
NM
Location:
3,500
Houston, TX (United States)
Forum Energy Technologies, Inc. designs, manufactures, and distributes products to the oil and natural gas industry in the United States and internationally. The company
operates in two segments, Drilling & Subsea, and Production & Infrastructure. The Drilling & Subsea segment designs and manufactures products, and provides related
services to the subsea, drilling, well construction, completion, and intervention markets. This segment also offers subsea technologies, including robotic vehicles and other
capital equipment, specialty components and tooling, complementary subsea technical services and rental items, and applied products for subsea pipelines; drilling
technologies consisting of capital equipment and a line of products consumed in the drilling and well intervention process; and down hole technologies comprising
cementing and casing tools, completion products, and down hole protection solutions. The Production & Infrastructure segment designs and manufactures products, and
provides related equipment and services to the well stimulation, completion, production, and infrastructure markets. This segment supplies flow equipment, such as well
stimulation consumable products, and related recertification and refurbishment services; production equipment, including well site production equipment and process
equipment; and valve solutions consisting of a range of industrial and process valves. The company is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$27.30
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
73.7%
$37.03
22.72
507
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,768.2
348.8
$1.85
1.87
1.88
$1,974.3
408.9
$2.23
2.24
2.20
$2,103.0
439.2
$2.48
2.48
2.30
1.4x
Valuation Metrics (x)
$2,570.3
Enterprise Value / Revenue
1.7x
1.5x
421.3
Enterprise Value / EBITDA
8.4x
7.1x
6.6x
0.6
–
74.1
$2,918.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
14.8x
14.6x
1.2x
12.2x
12.2x
1.0x
11.0x
11.0x
1.0x
Price / Volume — Last Twelve Months
$40.00
7,000
$35.00
6,000
5,000
$25.00
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
40
Volume (000s)
Price ($USD)
$30.00
Frank’s International N.V.
Ticker:
FI
Jefferies Rating:
Hold
Price:
$17.23
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$19.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1938
Location:
4,100
Amsterdam, Netherlands
Frank's International N.V. provides various engineered tubular services for the oil and gas exploration and production companies in the United States and internationally. Its
tubular services include the handling and installation of multiple joints of pipe to establish a cased wellbore; and the installation of smaller diameter pipe inside a cased
wellbore to provide a conduit for produced oil and gas to reach the surface. It also designs, manufactures, sells, and rents outside diameter (OD) pipes; and provides
fabrication and welding services in support of deep water projects consisting of drilling and production risers, flowlines and pipeline end terminations, and long length
tubulars for use as caissons or pilings.; and distributes OD pipes manufactured by third parties. Frank's International N.V. was founded in 1938 and is headquartered in
Amsterdam, the Netherlands.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$17.23
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
54.3%
$31.74
16.04
567
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
($USD millions, except per share data)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,130.5
414.0
$1.00
1.10
1.12
$1,228.3
456.4
$1.23
1.25
1.30
$1,279.9
493.4
$1.48
1.38
1.55
1.9x
Valuation Metrics (x)
$2,645.2
Enterprise Value / Revenue
2.2x
2.0x
0.3
Enterprise Value / EBITDA
5.9x
5.4x
5.0x
247.2
0.7
443.7
$2,449.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
17.1x
15.6x
0.0x
14.0x
13.8x
0.0x
11.6x
12.5x
0.0x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$35.00
6,000
$30.00
5,000
Price ($USD)
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
41
Volume (000s)
$25.00
GeoPark Limited
Ticker:
GPRK
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$8.59
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2002
Location:
391
Santiago, Chile
GeoPark Limited is engaged in the exploration, development, and production of oil and gas reserves. It owns working and/or economic interests in 28 hydrocarbon blocks
located in Chile, Colombia, Brazil, and Argentina. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013.
GeoPark Limited was founded in 2002 and is based in Santiago, Chile.
Trading Data
(as of Oct 31, 2014)
Financial Projections
($USD)
Share Price
$8.59
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
78.1%
$11.00
6.11
34
December
Enterprise Value Calculation
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
FY 2014E
FY 2015E
FY 2016E
$474.2
247.5
$1.03
1.10
NA
$586.0
329.5
$1.49
1.52
NA
$741.6
457.3
$3.15
2.49
NA
Valuation Metrics (x)
($USD millions)
Market Capitalization (fully-diluted)
($USD millions, except per share data)
(Consensus, unless otherwise noted)
$497.0
Enterprise Value / Revenue
1.8x
1.5x
1.1x
375.7
Enterprise Value / EBITDA
3.4x
2.6x
1.9x
104.3
–
125.3
$851.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.3x
7.8x
1.5x
5.8x
5.7x
1.1x
2.7x
3.4x
0.8x
Price / Volume — Last Twelve Months
$12.00
1,400
1,200
$10.00
Price ($USD)
800
$6.00
600
$4.00
400
$2.00
–
11/13
200
12/13
1/14
2/14
3/14
4/14
5/14
Volume
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
42
Volume (000s)
1,000
$8.00
Goodrich Petroleum Corporation
Ticker:
GDP
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$8.24
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1995
Location:
103
Houston, TX (United States)
Goodrich Petroleum Corporation, an independent oil and natural gas company, is engaged in the exploration, development, and production of oil and natural gas. The
company holds interest in the Eagle Ford Shale Trend located in South Texas; the Haynesville Shale and Cotton Valley Taylor Sand in northwest Louisiana and East Texas;
and the Tuscaloosa Marine Shale located in southwest Mississippi and southeast Louisiana. It owns working interests in 436 producing oil and natural gas wells located in
44 fields in 8 states. As of December 31, 2013, the company had estimated proved reserves of approximately 452.2 billion cubic feet equivalent of natural gas, 6.3 million
barrels of crude oil or other liquid hydrocarbons (MMBbls) of natural gas liquids, and 14.1 MMBbls of oil and condensate. Goodrich Petroleum Corporation was founded in
1995 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$8.24
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
27.0%
$30.52
7.51
2,122
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
FY 2014E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$223.2
143.5
($2.03)
(1.73)
NA
FY 2015E
FY 2016E
$327.9
229.4
($0.82)
(0.91)
NA
$325.0
301.5
($1.83)
(0.18)
NA
Valuation Metrics (x)
$366.1
Enterprise Value / Revenue
4.1x
2.8x
2.8x
537.5
Enterprise Value / EBITDA
6.3x
3.9x
3.0x
–
2.3
0.5
$905.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
3.7x
NM
NM
2.3x
NM
NM
1.8x
Price / Volume — Last Twelve Months
$35.00
18,000
16,000
$30.00
14,000
Price ($USD)
12,000
$20.00
10,000
$15.00
8,000
6,000
$10.00
4,000
$5.00
–
10/13
2,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
43
Volume (000s)
$25.00
Gulfport Energy Corporation
Ticker:
GPOR
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGS
Jefferies Analyst:
Not Covered
Target Price:
$50.18
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
118
Oklahoma City, OK (United States)
Gulfport Energy Corporation, an independent oil and natural gas exploration and production company, is engaged in the exploration, exploitation, acquisition, and production
of crude oil, natural gas liquids, and natural gas in the United States. The company’s principal properties are located along the Louisiana Gulf Coast; in the Utica Shale,
Eastern Ohio; in the Niobrara Formation, northwestern Colorado; and in the Bakken Formation, Western North Dakota and Eastern Montana. As of December 31, 2013, it
had 38.4 million barrels of oil equivalent of proved reserves. Gulfport Energy Corporation is headquartered in Oklahoma City, Oklahoma.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$50.18
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
66.2%
$75.75
40.12
1,730
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$556.6
415.9
$1.62
0.44
NA
$948.3
645.8
$0.53
0.52
NA
$1,369.4
934.4
$1.26
1.22
NA
3.3x
Valuation Metrics (x)
$4,290.4
Enterprise Value / Revenue
8.2x
4.8x
339.3
Enterprise Value / EBITDA
11.0x
7.1x
4.9x
–
–
75.3
$4,554.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
31.0x
NM
0.8x
NM
NM
0.5x
39.8x
41.1x
0.4x
$80.00
16,000
$70.00
14,000
$60.00
12,000
$50.00
10,000
$40.00
8,000
$30.00
6,000
$20.00
4,000
$10.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
44
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Halliburton Company
Ticker:
HAL
Jefferies Rating:
Buy
Price:
$55.14
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$74.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1919
Location:
80,000
Houston, TX (United States)
Halliburton Company provides a range of services and products for the exploration, development, and production of oil and natural gas to the energy industry worldwide. The
company operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement
services, such as stimulation services and sand control services; and cementing services comprising bonding the well and well casing, and casing equipment. It also provides
completion tools that provide downhole solutions and services, including well completion products and services, intelligent well completions, liner hanger systems, sand
control systems, and service tools. In addition, this segment offers well intervention services, pressure control, equipment rental tools and services, and pipeline and process
services; oilfield production and completion chemicals and services that address production, processing, and transportation operations; electrical submersible pumps; and
installation, maintenance, repair, and testing services. The Drilling and Evaluation segment provides drill bits and services, such as roller cone rock bits, fixed cutter bits,
hole enlargement, and related downhole tools and services, as well as coring equipment and services; wireline and perforating services, including open-hole logging, casedhole and slickline, borehole seismic, and formation and reservoir solutions; and testing and subsea services comprising acquisition and analysis of reservoir information and
optimization solutions. This segment also offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste
management services; drilling systems and services; integrated exploration, drilling, and production software, and related professional and data management services; and
oilfield project management and integrated solutions. The company was founded in 1919 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$55.14
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
74.2%
$74.33
47.60
10,729
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$33,048.8
7,264.6
$4.17
4.05
4.03
$35,545.9
8,404.3
$4.86
4.85
4.35
$37,736.0
9,358.4
$5.69
5.55
4.85
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$46,728.9
Enterprise Value / Revenue
1.6x
1.5x
1.4x
7,816.0
Enterprise Value / EBITDA
7.2x
6.2x
5.6x
27.0
–
2,160.0
$52,411.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
13.2x
13.6x
1.1x
11.4x
11.4x
0.9x
9.7x
9.9x
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$80.00
35,000
$70.00
30,000
25,000
$50.00
20,000
$40.00
15,000
$30.00
10,000
$20.00
5,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
45
Volume (000s)
Price ($USD)
$60.00
Helix Energy Solutions Group, Inc.
Ticker:
HLX
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$26.64
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1979
Location:
1,600
Houston, TX (United States)
Helix Energy Solutions Group, Inc., an offshore energy company, together with its subsidiaries, provides specialty services to the offshore energy industry, primarily in the
Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions. The company operates through Well Intervention, Robotics, and Production Facilities segments. It
engineers, manages, and conducts well construction, intervention, and asset retirement operations in water depths ranging from 200 to 10,000 feet; operates remotely
operated vehicles (ROVs), trenchers, and ROVDrills for offshore construction, maintenance, and well intervention services primarily in the Gulf of Mexico, North Sea, the Asia
Pacific, and West Africa regions. The company offers production services, such as inspection, repair, and maintenance of production structures, trees, jumpers, risers,
pipelines, and subsea equipment; well intervention services; life of field support services; and intervention engineering services. It also provides reclamation and remediation
services; plugging and abandonment services; pipeline abandonment services; and site inspection services. In addition, the company offers oil and natural gas processing
services to oil and natural gas companies. Its customers primarily include independent oil and gas producers and suppliers, pipeline transmission companies, alternative
(renewable) energy companies, and offshore engineering and construction firms. The company was formerly known as Cal Dive International, Inc. and changed its name to
Helix Energy Solutions Group, Inc. in March 2006. Helix Energy Solutions Group, Inc. was incorporated in 1979 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$26.64
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
95.1%
$28.00
19.44
1,058
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,131.0
403.1
$2.00
1.95
NA
$1,161.0
426.3
$1.93
1.95
NA
$1,288.2
517.7
$2.50
2.53
NA
2.2x
Valuation Metrics (x)
$2,811.5
Enterprise Value / Revenue
2.5x
2.4x
554.3
Enterprise Value / EBITDA
7.0x
6.6x
5.4x
–
–
546.5
$2,819.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
13.3x
13.7x
1.4x
13.8x
13.7x
1.3x
10.7x
10.5x
1.1x
Price / Volume — Last Twelve Months
$30.00
3,500
3,000
$25.00
Price ($USD)
2,000
$15.00
1,500
$10.00
1,000
$5.00
–
10/13
500
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
46
Volume (000s)
2,500
$20.00
Hercules Offshore, Inc.
Ticker:
HERO
Jefferies Rating:
Hold
Price:
$1.65
Exchange:
NasdaqGS
Jefferies Analyst:
Bradley Handler
Target Price:
$4.50
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
2004
Location:
2,200
Houston, TX (United States)
Hercules Offshore, Inc., together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry
worldwide. The company operates through Domestic Offshore, International Offshore, and International Liftboats segments. Its services comprise oil and gas exploration and
development drilling, well services, platform inspection, maintenance, and decommissioning services in various shallow-water provinces. As of February 19, 2014, the
company owned a fleet of 38 jackup rigs; and 19 liftboat vessels, as well as operated 5 liftboat vessels owned by third party. It serves national oil and gas companies,
integrated energy companies, and independent oil and natural gas operators. The company was formerly known as Hercules Offshore, LLC and changed its name to Hercules
Offshore, Inc. in 2005. Hercules Offshore, Inc. was founded in 2004 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$1.65
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
22.5%
$7.35
1.42
4,430
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
$904.8
244.8
($0.60)
(0.19)
0.20
FY 2015E
FY 2016E
$892.3
255.4
($0.08)
(0.08)
0.40
$879.9
278.5
($0.13)
(0.11)
0.10
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$265.3
Enterprise Value / Revenue
1.4x
1.4x
1.5x
Total Debt
1,210.9
Enterprise Value / EBITDA
5.2x
5.0x
4.6x
–
–
192.1
$1,284.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
4.9x
NM
NM
4.7x
NM
NM
4.3x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$8.00
30,000
$7.00
25,000
20,000
$5.00
$4.00
15,000
$3.00
10,000
$2.00
5,000
$1.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
47
Volume (000s)
Price ($USD)
$6.00
Jones Energy, Inc.
Ticker:
JONE
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$12.36
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1988
Location:
91
Austin, TX (United States)
Jones Energy, Inc. is engaged in the acquisition, exploration, development, and production of oil and natural gas properties in the mid-continent region of the United States.
The company owns leasehold interests in oil and natural gas producing properties, as well as in undeveloped acreage located in the Anadarko and Arkoma basins in Texas
and Oklahoma. As of December 31, 2013, its total estimated proved reserves included 89.0 million barrels of oil equivalent. The company was founded in 1988 and is
headquartered in Austin, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$12.36
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
59.5%
$20.79
10.55
163
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$410.1
307.0
$0.68
1.07
NA
$478.5
361.5
$1.38
1.15
NA
$584.9
446.7
NA
1.50
NA
Valuation Metrics (x)
$154.8
Enterprise Value / Revenue
3.2x
2.8x
2.3x
750.0
Enterprise Value / EBITDA
4.3x
3.7x
3.0x
453.3
–
31.8
$1,326.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
18.3x
11.6x
2.4x
9.0x
10.8x
2.1x
NA
8.3x
1.7x
Price / Volume — Since IPO
$25.00
1,400
1,200
$20.00
Price ($USD)
$15.00
800
600
$10.00
400
$5.00
200
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
48
Volume (000s)
1,000
Kinder Morgan, Inc.
Ticker:
KMI
Jefferies Rating:
Hold
Price:
$38.70
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$34.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
NM
Location:
11,075
Houston, TX (United States)
Kinder Morgan, Inc. operates as a midstream and energy company in North America. It operates through Natural Gas Pipelines, CO2—KMP, Products Pipelines—KMP,
Terminals—KMP, Kinder Morgan Canada—KMP, and Other segments. The company owns an interest in or operates approximately 80,000 miles of pipelines and 180
terminals. Its pipelines transport natural gas, gasoline, crude oil, carbon dioxide (CO2), and other products; and terminals store petroleum products and chemicals, and
handle products, such as ethanol, coal, petroleum coke, and steel. The company was formerly known as Kinder Morgan Holdco LLC and changed its name to Kinder Morgan,
Inc. in February 2011. Kinder Morgan, Inc. is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$38.70
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
91.1%
$42.49
30.81
15,476
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$16,578.3
6,668.3
$1.25
1.23
N/A
$18,188.5
7,644.0
$0.93
1.29
N/A
$18,627.0
7,889.4
$1.17
1.26
N/A
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$39,792.5
Enterprise Value / Revenue
5.6x
5.1x
5.0x
38,013.0
Enterprise Value / EBITDA
14.0x
12.2x
11.8x
16,224.0
–
600.0
$93,429.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
31.1x
31.4x
5.7x
41.7x
30.0x
5.0x
33.2x
30.8x
4.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Since IPO
$45.00
160,000
$40.00
140,000
$35.00
120,000
Price ($USD)
100,000
$25.00
80,000
$20.00
60,000
$15.00
40,000
$10.00
20,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Note: Due to Jefferies advisory role with respect to KMP & KMR, Jefferies remains restricted from publishing research estimates for KMI.
Jefferies 2014 Annual Global Energy Conference
49
Volume (000s)
$30.00
Lonestar Resources Limited
Ticker:
LNR
Jefferies Rating:
NA
Price:
Exchange:
ASX
Jefferies Analyst:
Not Covered
Target Price:
$0.33
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
9
Fort Worth, TX (United States)
Lonestar Resources Limited, an independent oil and gas company, acquires, explores for, develops, and produces oil and gas properties in the United States. The company
primarily focuses on its Beall Ranch, Asherton, and Gonzo properties in the Eagle Ford Shale in South Texas; and holds a 65.0% working interest in the West Poplar asset
that covers an area of 32,625 net acres in the Bakken and Three Forks plays in the Roosevelt County, Montana. Lonestar Resources Limited is headquartered in Fort Worth,
Texas.
Trading Data
(as of Oct 31, 2014)
($AUD)
Share Price
$0.33
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
51.0%
$0.64
0.20
1,763
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($AUD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($AUD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$122.0
87.2
$0.06
0.03
NA
$203.1
143.5
$0.07
0.08
NA
$242.8
177.2
$0.10
0.10
NA
Valuation Metrics (x)
$244.5
Enterprise Value / Revenue
3.7x
2.2x
1.8x
215.1
Enterprise Value / EBITDA
5.1x
3.1x
2.5x
–
–
13.5
$446.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
5.8x
10.7x
2.5x
4.3x
4.1x
1.5x
3.2x
3.2x
1.2x
Price / Volume — Since IPO
$0.70
30,000
$0.60
25,000
Price ($AUD)
20,000
$0.40
15,000
$0.30
10,000
$0.20
5,000
$0.10
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
50
Volume (000s)
$0.50
Matador Resources Company
Ticker:
MTDR
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$24.27
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2003
Location:
66
Dallas, TX (United States)
Matador Resources Company, an independent energy company, acquires, explores, develops, and produces oil and natural gas resources in the United States. It primarily
holds interests in the Eagle Ford shale play in South Texas; and the Wolfcamp and Bone Spring plays in the Permian Basin in Southeast New Mexico and West Texas. The
company also has interests in the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas; and the Meade Peak shale play in Southwest Wyoming
and the adjacent areas of Utah and Idaho. As of December 31, 2013, its estimated total proved oil and natural gas reserves were 51.7 million barrels of oil equivalent,
including 16.4 million one stock tank barrels of oil and 212.2 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its
name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$24.27
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
81.1%
$29.94
17.69
973
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$383.5
277.0
$1.13
1.19
NA
$536.7
391.6
$1.43
1.45
NA
$618.0
502.9
$1.75
1.82
NA
3.1x
Valuation Metrics (x)
$1,779.9
Enterprise Value / Revenue
5.0x
3.6x
150.0
Enterprise Value / EBITDA
6.9x
4.9x
3.8x
–
–
14.6
$1,915.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
21.5x
20.3x
0.5x
17.0x
16.7x
0.4x
13.9x
13.3x
0.3x
$35.00
7,000
$30.00
6,000
$25.00
5,000
$20.00
4,000
$15.00
3,000
$10.00
2,000
$5.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
51
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Nabors Industries Ltd.
Ticker:
NBR
Jefferies Rating:
Buy
Price:
$17.85
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$26.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1968
Location:
25,850
Hamilton, Bermuda
Nabors Industries Ltd., together with its subsidiaries, provides drilling and rig services; and completion and production services. It offers equipment manufacturing,
instrumentation optimization software, and directional drilling services. The company also provides completion, life-of-well maintenance, and eventual plugging and
abandonment of a well. The company markets approximately 485 land drilling rigs for oil and gas land drilling operations in the United States, Canada, and approximately
20 other countries worldwide. It also markets approximately 445 rigs for land well-servicing and workover services in the United States; and approximately 104 rigs for land
well-servicing and workover services in Canada. In addition, the company provides 38 platform, 8 jackup, and 4 barge rigs in the United States and internationally. Further, it
offers a range of hydraulic fracturing, cementing, nitrogen, and acid pressure pumping services; and ancillary well-site services, such as engineering, transportation and
disposal, construction, maintenance, well logging, directional drilling, rig instrumentation, data collection, and other support services. Additionally, the company
manufactures, leases, or sells top drives for a range of drilling applications, directional drilling systems, rig instrumentation and data collection equipment, pipeline handling
equipment, and rig reporting software. The company was founded in 1968 and is headquartered in Hamilton, Bermuda.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$17.85
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
59.0%
$30.24
15.32
6,162
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$6,853.3
1,775.3
$1.08
1.18
1.21
$7,008.4
2,065.7
$1.98
1.97
1.80
$7,260.5
2,184.3
$2.37
2.26
2.30
Valuation Metrics (x)
$5,350.4
Enterprise Value / Revenue
1.3x
1.3x
1.3x
4,255.3
Enterprise Value / EBITDA
5.2x
4.4x
4.2x
10.4
–
464.8
$9,151.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
16.5x
15.1x
2.4x
9.0x
9.1x
2.1x
7.5x
7.9x
1.9x
Price / Volume — Last Twelve Months
$35.00
40,000
$30.00
35,000
30,000
Price ($USD)
25,000
$20.00
20,000
$15.00
15,000
$10.00
10,000
$5.00
–
10/13
5,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
52
Volume (000s)
$25.00
National Fuel Gas Company
Ticker:
NFG
Jefferies Rating:
Buy
Price:
$69.23
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$79.00
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1902
Location:
1,912
Williamsville, NY (United States)
National Fuel Gas Company operates as a diversified energy company in the United States. The company’s Utility segment sells natural gas or provides natural gas
transportation services to approximately 735,000 customers in Buffalo, Niagara Falls, and Jamestown, New York; and Erie and Sharon, Pennsylvania. Its Pipeline and
Storage segment provides interstate natural gas transportation and storage services through an integrated gas pipeline system extending from southwestern Pennsylvania to
the New York-Canadian border, and eastward to Ellisburg and Leidy, Pennsylvania; and owns and operates 27 underground natural gas storage fields, as well as 4 other
underground natural gas storage fields. This segment also transports natural gas for Distribution Corporation, as well as for other utilities, industrial customers, and power
producers in New York State. It owns and operates the Empire Pipeline, a 249-mile integrated pipeline system. The company’s Exploration and Production segment explores
for, develops, and produces natural gas and oil reserves in California, in the Appalachian region of the United States, and in Kansas. As of September 30, 2013, this
segment had proved developed and undeveloped reserves of 41,598 thousand barrels of oil and 1,299,515 million cubic feet of natural gas. Its Energy Marketing segment
markets natural gas to industrial, wholesale, commercial, public authority, and residential customers primarily in western and central New York and northwestern
Pennsylvania. The company’s Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region. As of
September 30, 2013, the company also owned approximately 95,000 acres of timber property and manages an additional 3,000 acres of timber cutting rights. National Fuel
Gas Company was founded in 1902 and is based in Williamsville, New York.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$69.23
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
87.9%
$78.79
64.31
538
September
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,169.3
974.0
$3.48
3.44
3.42
$2,284.0
1,064.9
$3.40
3.42
3.46
$2,395.1
1,228.2
$3.50
3.95
3.66
3.1x
Valuation Metrics (x)
$5,823.4
Enterprise Value / Revenue
3.4x
3.2x
1,649.0
Enterprise Value / EBITDA
7.6x
6.9x
6.0x
–
–
102.7
$7,369.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.9x
20.1x
1.7x
20.4x
20.2x
1.5x
19.8x
17.5x
1.3x
Price / Volume — Last Twelve Months
$80.00
2,500
$78.00
$76.00
2,000
$72.00
1,500
$70.00
$68.00
1,000
$66.00
$64.00
500
$62.00
$60.00
$58.00
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
53
Volume (000s)
Price ($USD)
$74.00
Natural Resource Partners L.P.
Ticker:
NRP
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$12.47
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2002
Location:
71
Houston, TX (United States)
Natural Resource Partners L.P., through its subsidiaries, owns, manages, and leases mineral properties in the United States. It owns coal reserves in coal-producing regions,
such as Appalachia, the Illinois Basin, and the Western United States, as well as lignite reserves in the Gulf Coast region. The company leases its reserves to mine operators
in exchange for royalty payments; and owns and manages infrastructure assets. It also owns and leases preparation plants and related material handling materials to third
parties; and owns handling and transportation infrastructure, as well as owns and manages aggregate reserves. As of December 31, 2013, the company owned or controlled
approximately 2.3 billion tons of proven and probable coal reserves; and approximately 500 million tons of aggregate reserves. NRP (GP) LP serves as the general partner of
the company. Natural Resource Partners L.P. was founded in 2002 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$12.47
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
58.3%
$21.39
10.50
530
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per unit data)
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$352.4
287.4
$1.13
1.19
NA
$424.1
307.2
$1.35
1.36
NA
$479.5
325.2
NA
1.52
NA
Valuation Metrics (x)
$1,522.7
Enterprise Value / Revenue
7.3x
6.1x
5.4x
1,114.0
Enterprise Value / EBITDA
9.0x
8.4x
7.9x
9.5
–
70.0
$2,576.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.0x
10.5x
3.9x
9.2x
9.1x
3.6x
NA
8.2x
3.4x
Price / Volume — Last Twelve Months
$25.00
8,000
7,000
$20.00
5,000
$15.00
4,000
$10.00
3,000
2,000
$5.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
54
Volume (000s)
Price ($USD)
6,000
Newfield Exploration Corporation
Ticker:
NFX
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$32.61
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1988
Location:
1,548
The Woodlands, TX (United States)
Newfield Exploration Company, an independent energy company, is engaged in the exploration, development, and production of crude oil, natural gas, and natural gas
liquids. Its primary areas of operation include the Mid-Continent, the Rocky Mountains, and onshore Gulf Coast. As of December 31, 2013, the company had proved reserves
of 576 million barrels of oil equivalent. Newfield Exploration Company was founded in 1988 and is headquartered in The Woodlands, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$32.61
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
71.8%
$45.43
22.79
3,090
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,314.3
1,450.1
$4.05
1.93
NA
$2,537.3
1,591.0
$2.73
2.51
NA
$2,891.4
1,863.5
$3.22
3.16
NA
2.4x
Valuation Metrics (x)
$4,411.8
Enterprise Value / Revenue
3.1x
2.8x
3,046.0
Enterprise Value / EBITDA
4.9x
4.4x
3.8x
–
–
396.0
$7,061.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.1x
16.9x
2.1x
12.0x
13.0x
1.9x
10.1x
10.3x
1.6x
Price / Volume — Last Twelve Months
$50.00
14,000
$45.00
12,000
$40.00
Price ($USD)
$30.00
8,000
$25.00
6,000
$20.00
$15.00
4,000
$10.00
2,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
55
Volume (000s)
10,000
$35.00
Newpark Resources, Inc.
Ticker:
NR
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$11.43
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1932
Location:
2,214
The Woodlands, TX (United States)
Newpark Resources, Inc. provides various products and services primarily to the oil and gas exploration industry. The company operates in two segments, Fluids Systems,
and Mats and Integrated Services. The Fluids Systems segment provides drilling fluids products and technical services for technical drilling projects involving complex
subsurface conditions, such as horizontal directional, geologically deep, or deep water drilling. This segment also offers completion services and equipment rental services;
and grinds barite and other industrial minerals. The Mats and Integrated Services segment provides composite mat rentals to the petrochemicals industry, well site
construction, and related well site services to oil and gas customers. This segment also manufactures and sells DURA-BASE composite mat systems for use in its domestic
and international rental operations. The company has operations in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. Newpark Resources,
Inc. was founded in 1932 and is based in The Woodlands, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$11.43
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
84.0%
$13.60
10.04
767
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,097.8
163.5
$0.95
0.81
NA
$1,213.5
193.8
$1.00
0.98
NA
$1,350.6
238.9
$1.11
1.19
NA
0.8x
Valuation Metrics (x)
$960.0
Enterprise Value / Revenue
1.0x
0.9x
181.3
Enterprise Value / EBITDA
6.7x
5.7x
4.6x
–
–
41.4
$1,099.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
12.1x
14.1x
1.1x
11.4x
11.6x
0.9x
10.3x
9.6x
0.8x
Price / Volume — Last Twelve Months
$16.00
3,500
$14.00
3,000
2,500
$10.00
2,000
$8.00
1,500
$6.00
1,000
$4.00
500
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
56
Volume (000s)
Price ($USD)
$12.00
NiSource Inc.
Ticker:
NI
Jefferies Rating:
Hold
Price:
$42.06
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$40.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1912
Location:
8,477
Merrillville, IN (United States)
NiSource Inc., an energy holding company, provides natural gas, electricity, and other products and services. It operates through three segments: Gas Distribution
Operations, Columbia Pipeline Group Operations, and Electric Operations. The Gas Distribution Operations segment offers natural gas service and transportation to
residential, commercial, and industrial customers. As of December 31, 2013, it owned and operated a total of 58,146 miles of pipelines and related facilities. This segment
serves approximately 3.4 million customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland, Indiana, and Massachusetts. The Columbia Pipeline Group Operations
segment provides gas transportation and storage services for local distribution companies, marketers, and industrial and commercial customers located in northeastern, midAtlantic, midwestern, and southern states, as well as in the District of Columbia. As of December 31, 2013, it owned and operated approximately 14,780 miles of natural
gas transmission pipelines. This segment also operates underground natural gas storage systems capable of storing approximately 642 billion cubic feet of natural gas. The
Electric Operations segment generates, transmits, and distributes electricity; and offers wholesale and transmission transaction services. It serves approximately 460,000
customers in 20 countries in the northern part of Indiana; and operates 3 coal-fired electric generating stations with a net capability of 2,540 megawatts (MW), 4 gas-fired
generating units with a net capability of 206 MW, and 2 hydroelectric generating plants with a net capability of 10 MW, as well as a combined cycle gas turbine plant with a
capacity of 535 MW. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in
1912 and is headquartered in Merrillville, Indiana.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$42.06
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
99.0%
$42.50
30.65
2,136
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$6,396.6
1,891.5
$1.70
1.70
1.70
$6,725.6
2,069.9
$1.86
1.84
1.87
$7,147.0
2,221.3
$1.95
1.98
1.98
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$13,278.3
Enterprise Value / Revenue
3.6x
3.4x
3.2x
9,727.2
Enterprise Value / EBITDA
12.2x
11.1x
10.3x
–
–
17.7
$22,987.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
24.7x
24.7x
5.1x
22.6x
22.9x
4.7x
21.6x
21.3x
4.4x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$45.00
12,000
$40.00
10,000
$35.00
Price ($USD)
8,000
$25.00
6,000
$20.00
$15.00
4,000
$10.00
2,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
57
Volume (000s)
$30.00
Noble Corporation
Ticker:
NE
Jefferies Rating:
Hold
Price:
$20.92
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$26.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1921
Location:
6,000
London, United Kingdom
Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. It provides contract drilling services with a fleet of 77 offshore drilling units, such as
14 semisubmersibles, 14 drillships, and 49 jackups, including 2 ultra-deepwater drillships and 4 high-specification jackup drilling rigs under construction. The company
conducts its contract drilling operations in the United States, Gulf of Mexico and Alaska, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East,
India, Malaysia, and Australia. Noble Corporation was founded in 1921 and is headquartered in London, the United Kingdom.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$20.92
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
51.5%
$40.66
17.93
6,890
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$4,130.0
2,012.4
$3.03
3.01
3.00
$3,484.0
1,661.8
$2.25
2.31
2.65
$3,365.2
1,540.5
$1.89
1.93
2.65
3.2x
Valuation Metrics (x)
$5,277.3
Enterprise Value / Revenue
2.6x
3.1x
4,737.1
Enterprise Value / EBITDA
5.3x
6.4x
6.9x
723.4
–
68.4
$10,669.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
6.9x
6.9x
2.4x
9.3x
9.1x
2.9x
11.1x
10.8x
3.1x
Price / Volume — Last Twelve Months
$45.00
20,000
$40.00
18,000
$35.00
16,000
Price ($USD)
12,000
$25.00
10,000
$20.00
8,000
$15.00
6,000
$10.00
4,000
$5.00
–
10/13
2,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
58
Volume (000s)
14,000
$30.00
Noble Energy, Inc.
Ticker:
NBL
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$57.63
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1932
Location:
2,600
Houston, TX (United States)
Noble Energy, Inc., an independent energy company, is engaged in the exploration and production of crude oil and natural gas properties worldwide. Its principal projects are
located in onshore DJ Basin and Marcellus Shale, the United States; the deepwater Gulf of Mexico; offshore West Africa; and offshore Eastern Mediterranean. As of
December 31, 2013, it had approximately 1,406 million barrels oil equivalent of total proved reserves. Noble Energy, Inc. was founded in 1932 and is headquartered in
Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$57.63
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
72.4%
$79.63
52.65
2,525
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$5,371.1
3,727.9
$2.78
2.59
NA
$5,883.5
4,112.9
$2.62
2.77
NA
$7,458.5
5,378.7
$4.05
3.95
NA
3.4x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$20,768.1
Enterprise Value / Revenue
4.7x
4.3x
5,565.0
Enterprise Value / EBITDA
6.8x
6.1x
4.7x
–
–
1,169.0
$25,164.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
20.7x
22.2x
1.5x
22.0x
20.8x
1.4x
14.2x
14.6x
1.0x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$90.00
9,000
$80.00
8,000
$70.00
7,000
$60.00
6,000
$50.00
5,000
$40.00
4,000
$30.00
3,000
$20.00
2,000
$10.00
–
10/13
1,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
59
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Northern Oil and Gas, Inc.
Ticker:
NOG
Jefferies Rating:
NA
Price:
Exchange:
AMEX
Jefferies Analyst:
Not Covered
Target Price:
$11.30
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
20
Wayzata, MN (United States)
Northern Oil and Gas, Inc., an independent energy company, is engaged in the acquisition, exploration, development, and production of oil and natural gas properties in the
United States. It primarily holds interest in the Bakken and Three Forks formations in the Williston Basin of North Dakota and Montana. As of December 31, 2013, the
company owned working interests in 1,758 gross producing wells consisting of 1,754 wells targeting the Bakken and Three Forks formations; and 4 exploratory wells
targeting other formations. It also had proved reserves of 84.2 million barrels of oil equivalent. Northern Oil and Gas, Inc. is based in Wayzata, Minnesota.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$11.30
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
64.8%
$17.43
9.53
1,135
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$415.6
310.2
$0.54
0.99
NA
$474.9
353.3
$1.16
1.21
NA
$472.6
420.1
$0.77
1.38
NA
2.9x
Valuation Metrics (x)
$689.6
Enterprise Value / Revenue
3.3x
2.9x
706.8
Enterprise Value / EBITDA
4.5x
3.9x
3.3x
–
–
14.3
$1,382.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
21.1x
11.4x
2.3x
9.8x
9.3x
2.0x
14.7x
8.2x
1.7x
Price / Volume — Last Twelve Months
$18.00
4,000
$16.00
3,500
$14.00
3,000
Price ($USD)
2,500
$10.00
2,000
$8.00
1,500
$6.00
1,000
$4.00
500
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
60
Volume (000s)
$12.00
NOW Inc.
Ticker:
DNOW
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$30.06
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
4,500
Houston, TX (United States)
NOW Inc. distributes energy and industrial products to upstream, midstream, downstream, and industrial markets in the United States, Canada, and internationally. The
company’s products include pipes, valves and valve automations, fittings, mill and industrial supplies, tools, safety products, and artificial lift systems. It also provides
supply chain management, project management, and e-commerce solutions. The company offers its products under the DistributionNOW and Wilson Export brand names. It
serves oil and gas operators and drilling contractors, refineries, chemical companies, utilities, manufacturers, and engineering and construction companies. The company is
headquartered in Houston, Texas. NOW Inc. (NYSE:DNOW) operates independently of National Oilwell Varco, Inc. as of May 30, 2014.
Trading Data
(as of Oct 31, 2014)
Share Price
($USD)
$30.06
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Enterprise Value Calculation
79.8%
$37.65
26.74
1,592
December
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$4,168.3
238.7
$1.30
1.30
NA
$4,453.5
309.6
$1.71
1.67
NA
$4,862.2
366.9
$2.04
1.97
NA
0.6x
Valuation Metrics (x)
$3,218.2
Enterprise Value / Revenue
0.7x
0.7x
–
Enterprise Value / EBITDA
12.5x
9.6x
8.1x
–
–
236.0
$2,982.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
23.2x
23.1x
–
17.6x
18.0x
–
14.7x
15.2x
–
Price / Volume — Last Twelve Months
$40.00
25,000
$35.00
20,000
$25.00
15,000
$20.00
10,000
$15.00
$10.00
5,000
$5.00
–
5/14
6/14
7/14
8/14
Volume
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
61
Volume (000s)
Price ($USD)
$30.00
NuStar Energy L.P.
Ticker:
NS
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$60.80
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1999
Location:
2,477
San Antonio, TX (United States)
NuStar Energy L.P. is engaged in the terminalling, storage, and marketing of petroleum products, and transportation of petroleum products and anhydrous ammonia primarily
in the United States and the Netherlands. The company operates in three segments: Storage, Pipeline, and Fuels Marketing. The Storage segment owns terminal and storage
facilities for petroleum products, specialty chemicals, crude oil, and other feedstocks. Its terminals also offer pilotage, tug assistance, line handling, launch, emergency
response, and other ship services. The Pipeline segment transports refined petroleum products, crude oil, and anhydrous ammonia. It operates refined product pipelines in
Texas, Oklahoma, Colorado, New Mexico, Kansas, Nebraska, Iowa, South Dakota, North Dakota, and Minnesota. The Fuels Marketing segment is involved in the purchase of
crude oil and refined petroleum products for resale. As of December 31, 2013, the company had 60 terminal and storage facilities providing 84.8 million barrels of storage
capacity; 5,463 miles of refined product pipelines with 21 associated terminals that offer storage capacity of 4.9 million barrels; 2 tank farms providing storage capacity of
1.4 million barrels; 2,000 miles of anhydrous ammonia pipelines; 1,180 miles of crude oil pipelines with 3.4 million barrels of associated storage capacity. Riverwalk
Logistics, L.P. serves as the general partner of the company. NuStar Energy L.P. was founded in 1999 and is headquartered in San Antonio, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$60.80
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
89.0%
$68.33
41.92
439
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$3,230.1
547.2
$2.11
2.12
NA
$3,374.5
605.0
$2.49
2.56
NA
$3,638.0
676.4
$2.85
2.82
NA
Valuation Metrics (x)
$4,735.5
Enterprise Value / Revenue
2.3x
2.2x
2.0x
2,726.6
Enterprise Value / EBITDA
13.5x
12.3x
11.0x
–
–
49.1
$7,413.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
28.9x
28.7x
5.0x
24.4x
23.8x
4.5x
21.3x
21.6x
4.0x
Price / Volume — Last Twelve Months
$80.00
3,500
$70.00
3,000
2,500
$50.00
2,000
$40.00
1,500
$30.00
1,000
$20.00
500
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
62
Volume (000s)
Price ($USD)
$60.00
NuVista Energy Ltd.
Ticker:
NVA
Jefferies Rating:
NA
Price:
Exchange:
TSX
Jefferies Analyst:
Not Covered
Target Price:
$10.37
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2003
Location:
119
Calgary, Canada
NuVista Energy Ltd., an independent oil and natural gas company, explores for, develops, and produces oil and natural gas reserves in Canada. It primarily focuses on the
condensate-rich Montney formation in the Wapiti area of the Alberta Deep Basin. The company also holds other properties located in eastern and northwest Alberta, western
Saskatchewan, and northeast British Columbia. NuVista Energy Ltd. was founded in 2003 and is headquartered in Calgary, Canada.
Trading Data
(as of Oct 31, 2014)
($CAD)
Share Price
$10.37
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
83.2%
$12.47
6.42
623
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($CAD millions, except per unit data)
FY 2014E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($CAD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$260.0
NA
NA
(0.16)
NA
FY 2015E
FY 2016E
$368.0
NA
NA
0.33
NA
$541.0
NA
NA
0.82
NA
Valuation Metrics (x)
$1,434.9
Enterprise Value / Revenue
6.2x
4.4x
3.0x
169.8
Enterprise Value / EBITDA
NA
NA
NA
–
–
–
$1,604.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NA
NM
NA
NA
31.4x
NA
NA
12.6x
NA
$14.00
3,500
$12.00
3,000
$10.00
2,500
$8.00
2,000
$6.00
1,500
$4.00
1,000
$2.00
500
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
63
Volume (000s)
Price ($CAD)
Price / Volume — Last Twelve Months
Oasis Petroleum Inc.
Ticker:
OAS
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$29.96
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2007
Location:
522
Houston, TX (United States)
Oasis Petroleum Inc., an independent exploration and production company, focuses on the acquisition and development of oil and natural gas resources in the North Dakota
and Montana regions of the Williston Basin. The company’s primary projects are located in West Williston, East Nesson, and Sanish. As of December 31, 2013, it had
515,314 net leasehold acres in the Williston Basin; and had approximately 105.8 million barrels of oil equivalent of proved undeveloped reserves. The company sells its oil
and natural gas products to refiners, marketers, and other purchasers that have access to pipeline and rail facilities. Oasis Petroleum Inc. was founded in 2007 and is
headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$29.96
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
51.6%
$58.09
27.94
2,661
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,485.9
1,065.1
$3.52
2.88
NA
$1,755.7
1,255.6
$3.28
3.43
NA
$2,160.4
1,561.7
$4.35
4.49
NA
Valuation Metrics (x)
$3,030.6
Enterprise Value / Revenue
3.6x
3.0x
2.5x
2,300.0
Enterprise Value / EBITDA
5.0x
4.2x
3.4x
–
–
27.0
$5,303.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.5x
10.4x
2.2x
9.1x
8.7x
1.8x
6.9x
6.7x
1.5x
Price / Volume — Last Twelve Months
$70.00
12,000
$60.00
10,000
Price ($USD)
8,000
$40.00
6,000
$30.00
4,000
$20.00
2,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
64
Volume (000s)
$50.00
Oceaneering International, Inc.
Ticker:
OII
Jefferies Rating:
Buy
Price:
$70.27
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$81.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1965
Location:
12,200
Houston, TX (United States)
Oceaneering International, Inc., together with its subsidiaries, provides engineered services and products primarily to the offshore oil and gas industry worldwide. The
company’s Remotely Operated Vehicles (ROVs) segment offers submersible vehicles that are operated from the surface to support drilling; and vessel-based services,
including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair services. As of December 31, 2013, it
owned a fleet of 304 ROVs. Its Subsea Products segment constructs various subsea hardware products, which include various types of subsea umbilicals utilizing
thermoplastic hoses and steel tubes; tooling, and ROV tooling and work packages; production control equipments; blowout preventer control systems; installation and
workover control systems; clamp connectors; pipeline connectors and repair systems; subsea and topside control valves; and subsea chemical injection valves. The
company’s Subsea Projects segment performs subsea oilfield hardware installation and inspection, maintenance, and repair services; serves deepwater projects and shallow
water projects; and performs subsea intervention and hardware installation services, including subsea well tie-backs, pipeline/flow line tie-ins and repairs, pipeline crossings,
umbilical and other subsea equipment installations, and subsea intervention, as well as inspection, maintenance, and repair services. Its Asset Integrity segment provides
asset integrity management and assessment services, and nondestructive testing and inspection services. The company’s Advanced Technologies segment designs, develops,
and operates robotic systems and ROVs for non-oilfield markets; performs commercial theme park animation and civil works projects; and designs, develops, and fabricates
spacecraft hardware and high-temperature insulation products. Oceaneering International, Inc. was founded in 1965 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$70.27
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
81.0%
$86.79
58.54
1,397
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$3,702.9
857.8
$3.99
3.99
4.05
$3,985.2
929.2
$4.36
4.37
4.70
$4,231.8
1,027.3
$4.97
4.90
5.60
1.8x
Valuation Metrics (x)
$7,589.9
Enterprise Value / Revenue
2.1x
1.9x
250.0
Enterprise Value / EBITDA
9.1x
8.4x
7.6x
–
–
74.6
$7,765.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
17.6x
17.6x
0.3x
16.1x
16.1x
0.3x
14.1x
14.3x
0.2x
Price / Volume — Last Twelve Months
$100.00
6,000
$90.00
5,000
$80.00
Price ($USD)
4,000
$60.00
$50.00
3,000
$40.00
2,000
$30.00
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
65
Volume (000s)
$70.00
ONE Gas, Inc.
Ticker:
OGS
Jefferies Rating:
Hold
Price:
$37.95
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$37.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1906
Location:
3,100
Tulsa, OK (United States)
ONE Gas, Inc. operates as a regulated natural gas distribution utility company. It distributes natural gas to residential, commercial, industrial, transportation, and wholesale
and public authority customers in Oklahoma, Kansas, and Texas. The company owns approximately 19,000 miles of pipeline and other natural gas distribution facilities in
Oklahoma; approximately 13,000 miles of pipeline and other natural gas distribution facilities in Kansas; and approximately 10,000 miles of pipeline and other natural gas
distribution facilities in Texas, as well as has 57.3 billion cubic feet of natural gas storage capacity under lease. It serves approximately 2 million customers. The company
was founded in 1906 and is based in Tulsa, Oklahoma.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$37.95
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
97.5%
$38.91
31.94
262
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
($USD millions, except per share data)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,828.3
340.5
$1.97
1.94
1.89
$1,832.2
361.4
$2.05
2.05
2.04
$1,916.5
381.0
NA
2.17
2.21
Valuation Metrics (x)
$1,973.4
Enterprise Value / Revenue
1.6x
1.6x
1.6x
1,201.3
Enterprise Value / EBITDA
8.9x
8.3x
7.9x
–
–
161.3
$3,013.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.3x
19.6x
3.5x
18.5x
18.5x
3.3x
NA
17.5x
3.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$40.00
12,000
$39.00
10,000
$38.00
8,000
$36.00
$35.00
6,000
$34.00
$33.00
4,000
$32.00
$31.00
2,000
$30.00
$29.00
1/14
2/14
3/14
4/14
5/14
6/14
Volume
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
66
Volume (000s)
Price ($USD)
$37.00
ONEOK, Inc.
Ticker:
OKE
Jefferies Rating:
Buy
Price:
$58.94
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$74.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1906
Location:
1,927
Tulsa, OK (United States)
ONEOK, Inc. operates as a diversified energy company in the United States. The company gathers, processes, stores, and transports natural gas; gathers, treats, fractionates,
stores, and transports natural gas liquids (NGL); and owns and operates interstate and intrastate regulated natural gas transmission pipelines and natural gas storage
facilities, as well as stores and distributes NGL products to petrochemical manufacturers, heating fuel users, ethanol producers, and refineries and propane distributors. It
also owns and operates a parking garage; and leases excess office space to others in downtown Tulsa, Oklahoma. ONEOK, Inc. operates as the general partner of ONEOK
Partners, L.P. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$58.94
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
82.8%
$71.19
52.06
1,283
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$14,018.1
1,550.1
$1.47
1.59
1.47
$17,070.3
1,783.2
$1.81
1.95
1.80
$17,882.9
2,035.9
$1.98
2.25
2.25
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$12,259.7
Enterprise Value / Revenue
1.6x
1.3x
1.2x
7,226.9
Enterprise Value / EBITDA
14.4x
12.5x
10.9x
3,136.9
–
358.6
$22,264.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
40.1x
37.0x
4.7x
32.5x
30.2x
4.1x
29.8x
26.1x
3.5x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$80.00
5,000
4,500
$70.00
4,000
$60.00
Price ($USD)
3,000
$40.00
2,500
2,000
$30.00
1,500
$20.00
1,000
$10.00
–
10/13
500
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
67
Volume (000s)
3,500
$50.00
PDC Energy, Inc.
Ticker:
PDCE
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGS
Jefferies Analyst:
Not Covered
Target Price:
$43.72
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1969
Location:
412
Denver, CO (United States)
PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the
United States. The company’s operations are focused primarily in the Wattenberg Field of Colorado, including the horizontal Niobrara and Codell plays; the Utica Shale in
Ohio; and the Marcellus Shale in West Virginia. PDC Energy, Inc. operates in two segments, Oil and Gas Exploration and Production, and Gas Marketing. The Oil and Gas
Exploration and Production segment produces and sells natural gas to midstream service providers, marketers, utilities, industrial end-users, and other wholesale purchasers;
and crude oil and natural gas liquids. The Gas Marketing segment purchases, aggregates, and resells natural gas; and purchases natural gas produced by third party
producers for resale. This segment markets natural gas to third-party marketers and natural gas utilities, as well as to industrial and commercial customers. As of December
31, 2012, it had approximately 266 million barrels of crude oil equivalent of proved reserves; and owned an interest in approximately 3,100 gross wells. The company was
formerly known as Petroleum Development Corporation and changed its name to PDC Energy, Inc. in June 2012. PDC Energy, Inc. was founded in 1969 and is
headquartered in Denver, Colorado.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$43.72
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
62.1%
$70.44
35.97
834
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$572.1
315.4
$0.06
1.19
NA
$762.1
468.8
$2.37
2.38
NA
$983.0
607.2
$3.39
3.42
NA
2.2x
Valuation Metrics (x)
$1,568.3
Enterprise Value / Revenue
3.8x
2.9x
668.9
Enterprise Value / EBITDA
7.0x
4.7x
3.6x
–
–
40.4
$2,196.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
36.8x
2.1x
18.4x
18.4x
1.4x
12.9x
12.8x
1.1x
Price / Volume — Last Twelve Months
$80.00
3,500
$70.00
3,000
2,500
$50.00
2,000
$40.00
1,500
$30.00
1,000
$20.00
500
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
68
Volume (000s)
Price ($USD)
$60.00
Penn Virginia Corporation
Ticker:
PVA
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$8.57
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1882
Location:
144
Radnor, PA (United States)
Penn Virginia Corporation, an independent oil and gas company, is engaged in the exploration, development, and production of crude oil, natural gas liquids, and natural gas
in various onshore regions of the United States. Its operations include the drilling of unconventional horizontal development wells in shale formations primarily in the Eagle
Ford Shale in South Texas. The company also has operations in the Granite Wash in the Mid-Continent, the Haynesville Shale and Cotton Valley in East Texas, the Selma
Chalk in Mississippi, and the Marcellus Shale in Pennsylvania. As of December 31, 2013, it had 1,213 productive wells; owned approximately 280,400 acres of leasehold
and royalty interests; and had proved reserves of approximately 136 million barrels of oil equivalent. The company was founded in 1882 and is headquartered in Radnor,
Pennsylvania.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$8.57
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
47.1%
$18.20
6.75
2,998
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
$631.1
408.6
($0.29)
(0.31)
NA
FY 2015E
FY 2016E
$729.8
546.8
($0.08)
(0.02)
NA
$863.9
634.2
$0.13
0.12
NA
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$613.3
Enterprise Value / Revenue
2.5x
2.1x
1.8x
Total Debt
1,075.0
Enterprise Value / EBITDA
3.8x
2.9x
2.5x
–
4.0
123.7
$1,568.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
NM
2.6x
NM
NM
2.0x
NM
NM
1.7x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$20.00
10,000
$18.00
9,000
$16.00
8,000
$14.00
7,000
$12.00
6,000
$10.00
5,000
$8.00
4,000
$6.00
3,000
$4.00
2,000
$2.00
–
10/13
1,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
69
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Petróleo Brasileiro S.A. – Petrobras
Ticker:
PETR4
Jefferies Rating:
NA
Price:
Exchange:
BOVESPA
Jefferies Analyst:
Not Covered
Target Price:
$15.28
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1953
Location:
66,919
Rio de Janeiro, Brazil
Petróleo Brasileiro S.A. – Petrobras operates as an integrated oil and gas company in Brazil and internationally. Its Exploration and Production segment is engaged in the
exploration, development, and production of crude oil, natural gas liquids, and natural gas; sale and transfer of crude oil in domestic and foreign markets; and sale of oil
products produced at natural gas processing plants. The company’s Refining, Transportation, and Marketing segment is involved in the refining, logistics, transport, and
trading of crude oil and oil products, as well as exports ethanol and invests in petrochemical companies. This segment is also engaged in the extraction and processing of
shale. This segment’s products include gasoline, diesel, and residential liquefied petroleum gas. The company’s Gas and Power segment is engaged in the transportation and
trade of natural gas; transportation and trade of liquid natural gas; generation and trade of electricity; holding interests in natural gas distribution and thermoelectric power
stations; and fertilizer business. Its Biofuel segment is involved in the production of biodiesel and its co-products, as well as in the production and marketing of ethanol,
sugar, and the electric power generated from sugarcane bagasse. The company’s Distribution segment distributes oil products, ethanol, and vehicle natural gas in Brazil to
retail, commercial, and industrial customers, as well as other fuel wholesalers. Its International segment is engaged in the exploration, production, refining, transportation,
marketing, and distribution of gas and power in the Americas, Africa, Europe, and Asia. As of December 31, 2013, the company had proved developed oil and gas reserves of
7,605.8 million barrels of oil equivalent (mmboe) and proved undeveloped reserves of 4,934.5 mmboe in Brazil. Petróleo Brasileiro S.A. - Petrobras was founded in 1953
and is headquartered in Rio de Janeiro, Brazil.
Trading Data
(as of Oct 31, 2014)
($BRL)
Share Price
$15.28
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
61.4%
$24.90
12.57
68,303
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$344,415.2
71,829.8
$1.86
1.82
NA
$365,192.6
85,939.0
$2.23
2.31
NA
$370,802.0
97,201.1
$2.66
2.82
NA
Valuation Metrics (x)
$194,631.2
Enterprise Value / Revenue
1.3x
1.2x
1.2x
307,712.0
Enterprise Value / EBITDA
6.1x
5.1x
4.5x
1,540.0
–
66,376.0
$437,507.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.2x
8.4x
4.3x
6.9x
6.6x
3.6x
5.8x
5.4x
3.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($BRL millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($BRL millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$30.00
250,000
$25.00
200,000
Price ($BRL)
150,000
$15.00
100,000
$10.00
50,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
70
Volume (000s)
$20.00
Pioneer Energy Services Corp.
Ticker:
PES
Jefferies Rating:
Buy
Price:
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$9.18
Pric
(as of Oct 31, 2014)
$13.00
Business Description
Founded:
Employees:
1968
Location:
3,650
San Antonio, TX (United States)
Pioneer Energy Services Corp., through its subsidiaries, provides contract land drilling services and production services in the United States and Colombia. The company
offers its contract land drilling services to oil and gas exploration and production companies with its fleet of 62 drilling rigs in Texas, North Dakota, Utah, Appalachia, and
Colombia. It also provides a range of services to exploration and production companies, including well servicing, wireline services, coiled tubing services, and fishing and
rental services. Pioneer Energy Services Corp. provides its production services in the United States onshore oil and gas producing regions in the Mid-Continent and Rocky
Mountain states; and in the onshore and offshore Gulf Coast. As of December 31, 2013, it operated a fleet of 109 well servicing rigs, 119 wireline units, and 13 coiled
tubing units. The company was formerly known as Pioneer Drilling Company and changed its name to Pioneer Energy Services Corp. in 2012. Pioneer Energy Services Corp.
was founded in 1968 and is headquartered in San Antonio, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$9.18
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
49.9%
$18.40
6.87
1,037
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,041.3
262.3
$0.23
0.38
0.36
$1,117.5
288.3
$0.55
0.53
0.30
$1,095.3
267.9
$0.40
0.30
0.40
0.9x
Valuation Metrics (x)
$580.2
Enterprise Value / Revenue
1.0x
0.9x
463.7
Enterprise Value / EBITDA
3.9x
3.5x
3.8x
–
–
26.4
$1,017.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
39.5x
24.5x
1.8x
16.8x
17.3x
1.6x
23.0x
30.3x
1.7x
Price / Volume — Last Twelve Months
$20.00
3,500
$18.00
3,000
$16.00
Price ($USD)
$12.00
2,000
$10.00
1,500
$8.00
$6.00
1,000
$4.00
500
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
71
Volume (000s)
2,500
$14.00
Plains All American Pipeline, L.P.
Ticker:
PAA
Jefferies Rating:
Hold
Price:
$56.35
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$61.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1998
Location:
4,900
Houston, TX (United States)
Plains All American Pipeline, L.P., together with its subsidiaries, is engaged in transporting, storing, terminalling, and marketing crude oil, natural gas liquids (NGL), natural
gas, and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Transportation
segment transports crude oil and NGL through pipelines, gathering systems, trucks, and barges. As of December 31, 2013, this segment owned and leased 16,900 miles of
active crude oil, and NGL and gathering systems; 24 million barrels of active and above-ground tank capacity; 744 trailers; and 130 transport and storage barges, as well as
62 transport tugs. The Facilities segment provides storage, terminalling, and throughput services for crude oil, refined products, and NGL and natural gas; and NGL
fractionation and isomerization, and natural gas and condensate processing services. As of December 31, 2013, this segment owned and operated approximately 74 million
barrels of crude oil and refined products storage capacity; 23 million barrels of NGL storage capacity; 97 billion cubic feet of natural gas storage working capacity; 17 billion
cubic feet of base gas; 11 natural gas processing plants; 1 condensate stabilization facility; 7 fractionation plants; 24 crude oil and NGL rail terminals; and 1,250 miles of
active pipelines. The Supply and Logistics segment purchases crude oil at the wellhead, pipeline, and terminal and rail facilities; cargos at their load port and various other
locations in transit; NGL from producers, refiners, processors, and other marketers. This segment also stores inventory and NGL; resells or exchanges crude oil and NGL; and
transports crude oil and NGL on trucks, barges, railcars, pipelines, and ocean-going vessels. As of December 31, 2013, this segment owned 843 trucks and 982 trailers, and
7,400 crude oil and NGL railcars. The company was founded in 1998 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$56.35
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
92.2%
$61.09
46.63
1,032
December
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$46,879.9
2,230.5
$2.40
2.42
2.22
$47,300.7
2,554.0
$2.66
2.65
2.21
$49,602.9
2,889.7
$2.90
2.89
2.42
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$20,821.3
Enterprise Value / Revenue
0.6x
0.6x
0.6x
8,177.0
Enterprise Value / EBITDA
13.2x
11.5x
10.2x
381.0
–
27.0
$29,352.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
23.4x
23.2x
3.7x
21.2x
21.2x
3.2x
19.4x
19.5x
2.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$70.00
7,000
$60.00
6,000
$50.00
5,000
$40.00
4,000
$30.00
3,000
$20.00
2,000
$10.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
72
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Precision Drilling Corporation
Ticker:
PD
Jefferies Rating:
Buy
Price:
Exchange:
TSX
Jefferies Analyst:
Bradley Handler
Target Price:
$9.39
Pric
(as of Oct 31, 2014)
$11.00
Business Description
Founded:
Employees:
1951
Location:
8,530
Calgary, Canada
Precision Drilling Corporation provides energy services primarily to the North American oil and gas industry. It operates in two segments, Contract Drilling Services, and
Completion and Production Services. The Contract Drilling Services segment provides onshore drilling services to exploration and production companies in the oil and natural
gas industry. It also procures and distributes oilfield supplies; and manufactures, sells, and repairs drilling equipment. As of December 31, 2013, this segment operated
327 land drilling rigs, including 187 in Canada; 127 in the United States; 8 in Mexico; 3 in Saudi Arabia; and 2 in the Kurdistan region of northern Iraq. The Completion
and Production Services segment provides completion and workover services, and ancillary services to oil and natural gas exploration and production companies. It also
offers snubbing, coiled tubing, camp and catering, and wastewater treatment services; and oilfield equipment rental services. As of December 31, 2013, this segment
operated 191 well completion and workover service rigs, 19 snubbing units, and 12 coil tubing units in Canada and the United States; 235 wellsite accommodation units in
Canada and 67 wellsite accommodation units in the United States; and 50 drilling camps and 3 base camps in Canada, and 2 drilling camps and 1 base camp in the United
States. It also had 10 large-flow wastewater treatment units, 24 pump houses, and 7 potable water production units in Canada, as well as offered approximately 3,800
oilfield rental items, including surface storage, small-flow wastewater treatment, power generation, and solids control equipment primarily in Canada. Precision Drilling
Corporation was founded in 1951 and is headquartered in Calgary, Canada.
Trading Data
(as of Oct 31, 2014)
($CAD)
Share Price
$9.39
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
60.0%
$15.65
8.97
1,481
December
Enterprise Value Calculation
($CAD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($CAD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,368.0
799.7
$0.74
0.75
0.76
$2,684.5
939.5
$1.05
1.00
0.90
$2,905.5
1,045.4
$1.15
1.21
1.10
Valuation Metrics (x)
$2,749.1
Enterprise Value / Revenue
1.7x
1.5x
1.4x
1,794.3
Enterprise Value / EBITDA
5.0x
4.2x
3.8x
–
–
558.1
$3,985.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
12.7x
12.6x
2.2x
9.0x
9.4x
1.9x
8.2x
7.7x
1.7x
Price / Volume — Last Twelve Months
$18.00
80,000
$16.00
70,000
$14.00
60,000
Price ($CAD)
50,000
$10.00
40,000
$8.00
30,000
$6.00
20,000
$4.00
10,000
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
73
Volume (000s)
$12.00
QEP Resources, Inc.
Ticker:
QEP
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$25.07
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
1,001
Denver, CO (United States)
QEP Resources, Inc., through its subsidiaries, operates as an independent oil and natural gas exploration and production company. The company acquires, explores,
develops, and produces natural gas, oil, and natural gas liquids (NGLs) in the Williston Basin in North Dakota; the Pinedale Anticline in western Wyoming; the Uinta Basin in
eastern Utah; the Anadarko Basin in Oklahoma and Texas; and the Haynesville/Cotton Valley in northwestern Louisiana, as well as other proven properties in Wyoming,
Colorado, and Utah. As of December 31, 2013, it had estimated proved reserves of 4,061.9 Bcfe. The company markets and sells its products to various customers,
including gas-marketing firms, industrial users, local-distribution companies, crude oil refiners, and remarketers. It also offers midstream field services comprising natural
gas gathering, processing, and treating services; and midstream services to third-party customers, including major and independent producers. In addition, the company
markets affiliate and third-party natural gas, oil, and NGLs in the Rocky Mountains and Midcontinent regions of the United States; and owns and operates an underground
gas-storage reservoir in southwestern Wyoming. QEP Resources, Inc. is headquartered in Denver, Colorado.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$25.07
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
69.8%
$35.91
20.00
2,991
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$3,519.6
1,529.5
$2.24
1.30
NA
$2,606.6
1,557.5
$1.39
1.32
NA
$3,704.3
1,802.3
$2.25
1.89
NA
2.2x
Valuation Metrics (x)
$4,514.9
Enterprise Value / Revenue
2.3x
3.2x
3,915.5
Enterprise Value / EBITDA
5.4x
5.3x
4.6x
495.8
–
702.3
$8,223.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.2x
19.4x
2.6x
18.1x
19.0x
2.5x
11.1x
13.3x
2.2x
Price / Volume — Last Twelve Months
$40.00
25,000
$35.00
20,000
$25.00
15,000
$20.00
10,000
$15.00
$10.00
5,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
74
Volume (000s)
Price ($USD)
$30.00
Range Resources Corporation
Ticker:
RRC
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$68.40
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1975
Location:
867
Fort Worth, TX (United States)
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company acquires, explores,
and develops natural gas and oil properties. It holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and Southwestern regions. The
company owns 6,136 net producing wells; and approximately 1.6 million gross acres under lease in the Appalachian region. It also owns 1,538 net producing wells; and
approximately 710,000 gross acres under lease in the Southwestern region. In addition, the company owns gas gathering and transportation pipelines. Range Resources
Corporation sells natural gas to utilities, marketing and mid-stream companies, and industrial users; NGLs to natural gas processors or users of NGLs; and oil and condensate
to crude oil processors, transporters, and refining and marketing companies. As of December 31, 2013, it had proved reserves of 8.2 Tcfe. The company was formerly known
as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1975 and is headquartered in Fort
Worth, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$68.40
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
71.7%
$95.41
61.33
1,964
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,040.6
1,274.2
$2.44
1.62
NA
$2,298.2
1,438.0
$1.75
1.87
NA
$2,938.7
1,879.8
$2.35
3.02
NA
4.9x
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$11,341.9
Enterprise Value / Revenue
7.0x
6.2x
2,999.0
Enterprise Value / EBITDA
11.3x
10.0x
7.6x
–
–
0.5
$14,340.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
28.0x
42.2x
2.4x
39.2x
36.5x
2.1x
29.2x
22.6x
1.6x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$100.00
6,000
$90.00
5,000
$80.00
Price ($USD)
4,000
$60.00
$50.00
3,000
$40.00
2,000
$30.00
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
75
Volume (000s)
$70.00
RigNet, Inc.
Ticker:
RNET
Jefferies Rating:
Buy
Price:
$43.45
Exchange:
NasdaqGS
Jefferies Analyst:
Michael McCormack
Target Price:
$60.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
2000
Location:
481
Houston, TX (United States)
RigNet, Inc. provides network infrastructure services for the remote communications needs of the oil and gas industry. The company operates through three segments:
Americas, Europe/Africa, and Middle East/Asia Pacific. It offers remote communications services through a controlled and managed Internet protocol/multiprotocol label
switching (IP/MPLS) global network, enabling drilling contractors, oil companies, and oilfield service companies to communicate. The company offers a communications
package of voice, data, video, networking, and real-time data management to offshore and land-based remote locations. It primarily provides voice-over-Internet-protocol,
data, and high-speed Internet access, as well as other value-added services, such as video conferencing solutions, TurboNet wide area network acceleration solutions, realtime data management solutions, Wi-Fi hotspots and Internet kiosks, wireless intercoms, and handheld radios. The company also offers Secure Oil Information Link, a
managed members-only communications network hub that enables collaborative partners, suppliers, and customers to transfer and share data. In addition, RigNet provides
microwave and WiMAX networks in the U.S. Gulf of Mexico and the North Sea serving drillers, producers, and energy vessel owners; VSAT services; an M2M SCADA VSAT
network services to the pipeline industry; telecommunications systems integration services; and a L-band MSS retail energy services. It serves the owners and operators of
offshore drilling rigs and production facilities, land rigs, remote offices, and supply bases in approximately 45 countries, including the United States, Brazil, Norway, the
United Kingdom, Nigeria, Qatar, Saudi Arabia, Singapore, and Australia. The company was founded in 2000 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$43.45
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
73.6%
$59.06
35.55
140
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$328.1
79.4
$1.29
1.39
1.09
$380.3
98.9
$1.92
1.98
1.75
$446.3
113.3
NA
NA
NA
Valuation Metrics (x)
$765.5
Enterprise Value / Revenue
2.4x
2.1x
1.8x
85.3
Enterprise Value / EBITDA
9.9x
8.0x
7.0x
0.2
–
61.0
$790.0
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
33.8x
31.3x
1.1x
22.6x
21.9x
0.9x
NA
NA
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$60.00
500
450
$50.00
400
Price ($USD)
300
$30.00
250
200
$20.00
150
100
$10.00
50
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
76
Volume (000s)
350
$40.00
Rowan Companies plc
Ticker:
RDC
Jefferies Rating:
Buy
Price:
$24.27
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$33.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1923
Location:
3,499
Houston, TX (United States)
Rowan Companies plc provides offshore oil and gas contract drilling services. The company owns and operates 30 self-elevating mobile offshore jack-up drilling units and
ultra-deepwater drill ships. It operates in the United Kingdom and Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico, Southeast Asia,
West Africa, Trinidad, and Egypt. Rowan Companies plc was founded in 1923 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$24.27
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
64.2%
$37.81
21.19
2,850
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,799.9
690.5
$2.14
2.06
2.10
$2,352.9
1,012.8
$3.57
3.63
4.20
$2,462.8
1,024.1
$3.70
3.70
4.10
Valuation Metrics (x)
$3,021.7
Enterprise Value / Revenue
2.5x
1.9x
1.9x
2,807.8
Enterprise Value / EBITDA
6.6x
4.5x
4.5x
–
–
1,247.0
$4,582.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.3x
11.8x
4.1x
6.8x
6.7x
2.8x
6.6x
6.6x
2.7x
$40.00
40,000
$35.00
35,000
$30.00
30,000
$25.00
25,000
$20.00
20,000
$15.00
15,000
$10.00
10,000
$5.00
5,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
77
Volume (000s)
Price ($USD)
Price / Volume — Year to Date
RSP Permian, Inc.
Ticker:
RSPP
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$24.47
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2010
Location:
36
Dallas, TX (United States)
RSP Permian, Inc., an independent oil and natural gas company, focuses on the acquisition, exploration, development, and production of unconventional oil and associated
liquids-rich natural gas reserves in the Permian Basin of West Texas. It holds interest in contiguous acreage blocks in the core of the Midland Basin, a sub-basin of the
Permian Basin, primarily in the adjacent counties of Midland, Martin, Andrews, Dawson, and Ector. The company operates approximately three horizontal rigs and one
vertical rig in the Midland Basin. RSP Permian, Inc. was founded in 2010 and is headquartered in Dallas, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$24.47
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
72.7%
$33.67
19.50
1,115
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$309.2
230.3
$0.87
0.98
NA
$459.8
342.6
$1.28
1.34
NA
$610.9
451.6
$1.68
1.63
NA
3.3x
Valuation Metrics (x)
$1,891.3
Enterprise Value / Revenue
6.5x
4.4x
140.0
Enterprise Value / EBITDA
8.8x
5.9x
4.5x
–
–
14.7
$2,016.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
28.1x
25.1x
0.6x
19.2x
18.3x
0.4x
14.5x
15.0x
0.3x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$35.00
14,000
$30.00
12,000
$25.00
10,000
$20.00
8,000
$15.00
6,000
$10.00
4,000
$5.00
2,000
–
1/14
2/14
3/14
4/14
5/14
6/14
Volume
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
78
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
SAExploration Holdings, Inc.
Ticker:
SAEX
Jefferies Rating:
NA
Price:
Exchange:
NasdaqGM
Jefferies Analyst:
Not Covered
Target Price:
$6.74
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
NM
Location:
3,800
Houston, Canada
SAExploration Holdings, Inc., a geophysical services company, provides seismic data acquisition services to the oil and gas industry in North and South America, Southeast
Asia, and Africa. Its seismic data acquisition services include program design, and planning and permitting, camp services, survey, drilling, recording, reclamation, and infield processing. The company acquires 2D, 3D, time-lapse 4D, and multi-component seismic data on land, in transition zones between land and water and in shallow water.
It operates crews that are equipped with approximately 29,500 land and marine channels of seismic data acquisition equipment. The company is headquartered in Houston,
Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$6.74
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
67.4%
$10.00
6.60
13
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$420.2
54.2
$0.02
0.66
NA
$488.8
66.1
$1.27
1.29
NA
$594.4
87.0
$1.72
1.72
NA
Valuation Metrics (x)
$100.2
Enterprise Value / Revenue
0.4x
0.4x
0.3x
99.7
Enterprise Value / EBITDA
3.5x
2.9x
2.2x
1.7
–
13.4
$188.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
10.2x
1.8x
5.3x
5.2x
1.5x
3.9x
3.9x
1.1x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$12.00
450
400
$10.00
350
Price ($USD)
300
250
$6.00
200
$4.00
150
100
$2.00
50
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
79
Volume (000s)
$8.00
Sanchez Energy Corporation
Ticker:
SN
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
Employees:
NM
Location:
$17.07
(as of Oct 31, 2014)
–
Business Description
Founded:
2011
Houston, TX (United States)
Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition, exploration, and development of unconventional oil and
natural gas resources in the onshore U.S. Gulf Coast. As of March 5, 2014, it had approximately 120,000 net leasehold acres in the oil and condensate, or black oil and
volatile oil, windows of the Eagle Ford Shale in South Texas; approximately 57,000 net acres targeting the Tuscaloosa Marine Shale in Mississippi and Louisiana. The
company was founded in 2011 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$17.07
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
43.8%
$38.95
15.40
1,702
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
FY 2014E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
$716.5
514.8
($0.26)
0.69
NA
FY 2015E
FY 2016E
$1,101.5
773.2
$0.92
1.02
NA
$1,375.2
986.8
$2.87
2.18
NA
Valuation Metrics (x)
$1,000.3
Enterprise Value / Revenue
2.9x
1.9x
1.5x
1,443.7
Enterprise Value / EBITDA
4.0x
2.7x
2.1x
–
0.1
385.9
$2,058.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
24.9x
2.8x
18.6x
16.7x
1.9x
5.9x
7.8x
1.5x
Price / Volume — Last Twelve Months
$45.00
10,000
$40.00
9,000
$35.00
8,000
Price ($USD)
6,000
$25.00
5,000
$20.00
4,000
$15.00
3,000
$10.00
2,000
$5.00
–
10/13
1,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
80
Volume (000s)
7,000
$30.00
Schlumberger Limited
Ticker:
SLB
Jefferies Rating:
Buy
Price:
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$98.66
(as of Oct 31, 2014)
$119.00
Business Description
Founded:
Employees:
1926
Location:
123,000
Houston, TX (United States)
Schlumberger Limited supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The
company operates through three segments: Reservoir Characterization Group, Drilling Group, and Production Group. The Reservoir Characterization Group segment provides
reservoir imaging, monitoring, and development services; wireline technology that offers open-hole and cased-hole services; exploration and production pressure and flow-rate
measurement services; information solutions, such as software, consulting, information management, and IT infrastructure services that support oil and gas industry
operational processes; data interpretation and integration services; consulting services; and industry petrotechnical training solutions. The Drilling Group segment designs,
manufactures, and markets roller cone and fixed cutter drill bits, and drilling fluid systems; offers geo services; supplies engineering support, directional-drilling,
measurement-while-drilling, and logging-while-drilling services; and provides bottom hole assembly drilling tools, borehole enlargement technologies, impact tools, and
tubulars and tubular services. The Production Group segment provides well services comprising pressure pumping, well cementing, stimulation, and intervention; well
completion services and equipment, such as packers, safety valves, and sand control technology; artificial lifts; coiled tubing equipment and services; slickline services for
downhole mechanical well intervention, reservoir monitoring, and downhole data acquisition; subsea solutions; and geological storage solutions, including storage site
characterization for carbon dioxide, as well as is engaged in the development, management, and environmental protection of water resources. Schlumberger Limited was
founded in 1926 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$98.66
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
83.1%
$118.76
84.91
7,624
December
Enterprise Value Calculation
FY 2014E
FY 2015E
FY 2016E
$48,954.1
13,825.8
$5.53
5.63
5.61
$52,308.7
15,218.6
$6.35
6.37
5.85
$55,505.5
16,593.4
$7.12
7.18
6.55
2.4x
Valuation Metrics (x)
$126,955.1
Enterprise Value / Revenue
2.7x
2.6x
13,092.0
Enterprise Value / EBITDA
9.7x
8.8x
8.0x
182.0
–
6,759.0
$133,470.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
17.8x
17.5x
0.9x
15.5x
15.5x
0.9x
13.9x
13.7x
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
Price / Volume — Last Twelve Months
$140.00
20,000
18,000
$120.00
16,000
Price ($USD)
14,000
12,000
$80.00
10,000
$60.00
8,000
6,000
$40.00
4,000
$20.00
–
10/13
2,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
81
Volume (000s)
$100.00
Seventy Seven Energy Inc.
Ticker:
SSE
Jefferies Rating:
Hold
Price:
$13.07
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$28.00
(as of Oct 31, 2014)
Business Description
Founded:
2011
Employees:
Location:
5,300
Oklahoma City, OK (United States)
Seventy Seven Energy Inc. provides oilfield services in the United States. The company operates in the Drilling, Hydraulic Fracturing, Oilfield Rentals, Oilfield Trucking, and
Other Operations segments. The Drilling segment offers land drilling and drilling-related services, including directional drilling, geosteering, and mudlogging for the oil and
natural gas exploration and development activities. The Hydraulic Fracturing segment provides hydraulic fracturing and other well stimulation services. The Oilfield Rentals
segment offers rental tools for land-based oil and natural gas drilling, completion, and workover activities. It provides a line of rental tools, including drill pipe, drill collars,
tubing, blowout preventers, frac tanks, mud tanks, and environmental containment tools. This segment also offers air drilling, flowback services, and services associated with
the transfer of water to the wellsite for well completions. The Oilfield Trucking segment provides drilling rig relocation and logistics services, as well as fluid handling
services. The Other Operations segment manufactures natural gas compression units, and related oil and gas production equipment. As of December 31, 2013, the company
owned or leased a fleet of 115 land drilling rigs; owned 9 hydraulic fracturing fleets with an aggregate of 360,000 horsepower; and owned a fleet of 260 rig relocation
trucks, 67 cranes and forklifts, and 246 fluid hauling trucks. The company was formerly known as Chesapeake Oilfield Operating, L.L.C. and changed its name to June
2014. The company was founded in 2011 and is based in Oklahoma City, Oklahoma. Seventy Seven Energy Inc. operates independently of Chesapeake Energy Corporation
as of June 30, 2014.
Trading Data
(as of Oct 31, 2014)
Financial Projections
($USD)
Share Price
$13.07
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
46.1%
$28.34
12.25
841
December
Enterprise Value Calculation
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$2,089.0
451.3
$0.22
0.55
0.75
$2,253.5
554.4
$1.64
1.65
2.00
$2,473.6
617.3
$2.46
2.48
2.60
Valuation Metrics (x)
($USD millions)
Market Capitalization (fully-diluted)
$664.8
Enterprise Value / Revenue
1.1x
1.0x
0.9x
Total Debt
1,592.6
Enterprise Value / EBITDA
5.0x
4.1x
3.6x
–
–
5.3
$2,252.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
23.8x
3.5x
8.0x
7.9x
2.9x
5.3x
5.3x
2.6x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
$30.00
6,000
$25.00
5,000
$20.00
4,000
$15.00
3,000
$10.00
2,000
$5.00
1,000
–
6/14
7/14
8/14
9/14
Volume
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
82
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Spectra Energy Corp.
Ticker:
SE
Jefferies Rating:
Hold
Price:
$39.13
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$39.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
NM
Location:
5,800
Houston, TX (United States)
Spectra Energy Corp., through its subsidiaries, owns and operates a portfolio of natural gas-related energy assets in North America. The company’s Spectra Energy Partners
segment is engaged in the transmission, storage, and gathering of natural gas, as well as transportation and storage of crude oil and natural gas liquids (NGLs) for customers
in various regions of the midwestern, northeastern, and southeastern United States and Canada. Its natural gas pipeline systems consist of approximately 21,000 miles of
transmission pipelines; and storage capacity comprises 305 billion cubic feet (Bcf). Its Distribution segment offers natural gas storage, transmission, and distribution
services for residential, commercial, and industrial customers in Canada. This segment has approximately 39,000 miles of main and service pipelines; storage capacity of
approximately 160 Bcf; and transmission system of approximately 3,000 miles of high-pressure pipeline and mainline compressor stations. The company’s Western Canada
Transmission & Processing segment provides natural gas transmission, and gas gathering and processing services; and services to natural gas producers to remove impurities
from the raw gas stream, including water, carbon dioxide, hydrogen sulfide, and other substances. It also extracts, fractionates, transports, stores, and markets NGLs for
western Canadian producers and NGL customers. This segment serves local distribution companies, end-use industrial and commercial customers, marketers, and
exploration and production companies. Its Field Services segment gathers, compresses, treats, processes, transports, stores, and sells natural gas; produces, fractionates,
transports, stores, sells, markets, and trades in NGLs; and recovers and sells condensate. This segment owns or operates approximately 67,000 miles of gathering and
transmission pipelines. The company is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$39.13
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
90.7%
$43.12
32.80
3,280
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$5,990.6
3,059.9
$1.50
1.49
1.43
$6,335.5
3,221.3
$1.60
1.58
1.55
$6,612.2
3,430.6
$1.69
1.68
1.63
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$26,252.1
Enterprise Value / Revenue
7.1x
6.7x
6.5x
14,409.0
Enterprise Value / EBITDA
14.0x
13.3x
12.4x
2,351.0
–
304.0
$42,708.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
26.1x
26.3x
4.7x
24.5x
24.8x
4.5x
23.1x
23.3x
4.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$50.00
8,000
$45.00
7,000
$40.00
6,000
Price ($USD)
5,000
$30.00
$25.00
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
83
Volume (000s)
$35.00
Statoil ASA
Ticker:
STL
Jefferies Rating:
Hold
Price:
$152.20
Exchange:
OB
Jefferies Analyst:
Marc Kofler
Target Price:
$144.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1972
Location:
23,413
Stavanger, Norway
Statoil ASA, an integrated energy company, is engaged in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in
Norway and internationally. The company is involved in the exploration, development, and production of crude oil and natural gas, as well as extraction of natural gas liquids
in 44 assets in the North Sea, the Norwegian Sea, and the Barents Sea. It also transports, markets, and trades crude oil, natural gas liquids, and refined products, including
methanol; and operates, maintains, and develops gas processing plants. In addition, the company develops offshore wind-farms in Northwestern Europe; and develops
solutions for carbon capture and storage plant located in Mongstad. It has proved reserves of approximately 5,600 million barrels of oil equivalent. The company was
formerly known as StatoilHydro ASA and changed its name to Statoil ASA in November 2009. Statoil ASA was founded in 1972 and is headquartered in Stavanger, Norway.
Trading Data
(as of Oct 31, 2014)
($NOK)
Financial Projections
Share Price
$152.20
(Consensus, unless otherwise noted)
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
77.7%
$195.90
136.70
3,350
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
Enterprise Value Calculation
($NOK millions)
Market Capitalization (fully-diluted)
FY 2015E
FY 2016E
$619,244.9
220,097.7
$13.12
13.75
14.21
$621,248.5
223,293.1
$14.52
14.03
10.84
$637,306.1
231,418.5
$15.03
14.56
12.46
0.9x
Valuation Metrics (x)
$482,998.5
Enterprise Value / Revenue
0.9x
0.9x
188,500.0
Enterprise Value / EBITDA
2.5x
2.5x
2.4x
400.0
–
116,700.0
$555,198.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
11.6x
11.1x
0.9x
10.5x
10.8x
0.8x
10.1x
10.5x
0.8x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($NOK millions, except per share data)
FY 2014E
Price / Volume — Last Twelve Months
$250.00
14,000
12,000
$200.00
Price ($NOK)
$150.00
8,000
6,000
$100.00
4,000
$50.00
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
84
Volume (000s)
10,000
Stone Energy Corporation
Ticker:
SGY
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$24.50
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1993
Location:
409
Lafayette, LA (United States)
Stone Energy Corporation, an independent oil and natural gas company, acquires, explores, exploits, develops, and operates oil and gas properties in the Gulf of Mexico and
the Appalachia region. As of December 31, 2013, it had estimated proved oil and natural gas reserves of approximately 864 billion cubic feet of gas equivalent. The
company was founded in 1993 and is headquartered in Lafayette, Louisiana with additional offices in New Orleans, Louisiana; Houston, Texas; and Morgantown, West
Virginia.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$24.50
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
49.0%
$50.00
21.50
1,015
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$801.4
469.6
$0.64
0.73
NA
$909.3
557.0
$0.76
1.25
NA
$1,205.0
705.5
$2.04
2.05
NA
1.7x
Valuation Metrics (x)
$1,376.5
Enterprise Value / Revenue
2.6x
2.3x
1,033.9
Enterprise Value / EBITDA
4.4x
3.7x
2.9x
–
–
333.9
$2,076.5
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
38.5x
33.3x
2.2x
32.1x
19.6x
1.9x
12.0x
11.9x
1.5x
$60.00
6,000
$50.00
5,000
$40.00
4,000
$30.00
3,000
$20.00
2,000
$10.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
85
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Superior Energy Services, Inc.
Ticker:
SPN
Jefferies Rating:
Hold
Price:
$25.15
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$28.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1991
Location:
14,500
Houston, TX (United States)
Superior Energy Services, Inc. provides specialized oilfield services and equipment to oil and gas companies in the United States, the Gulf of Mexico, and internationally.
The company operates in four segments: Drilling Products and Services; Onshore Completion and Workover Services; Production Services; and Subsea and Technical
Solutions. The Drilling Products and Services segment manufactures and rents bottom hole tools, including stabilizers, non-magnetic drill collars, and hole openers; and
rents tubulars, such as primary drill pipe strings, tubing landing strings, completion tubulars, and associated accessories, as well as temporary onshore and offshore
accommodation modules and accessories. The Onshore Completion and Workover Services segment offers pressure pumping services consisting of hydraulic fracturing and
high pressure pumping services used to complete and stimulate production in new oil and gas wells; fluid management services used to obtain, move, store, and dispose of
fluids that are involved in the exploration, development, and production of oil and gas reservoirs; and workover services comprising installations, completions, and
sidetracking of wells, as well as support for perforating operations. The Production Services segment provides intervention services, such as coiled tubing, cased hole and
mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services; and specialized pressure control tools used to
manage and control pressure throughout the life of a well. The Subsea and Technical Solutions segment offers pressure control services, completion tools and services,
subsea construction, end-of-life services, and marine technical services. The company was founded in 1991 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$25.15
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
67.9%
$37.05
22.33
2,282
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$4,577.0
1,220.8
$1.75
1.81
1.81
$4,891.1
1,361.1
$2.35
2.30
1.75
$5,115.1
1,463.6
$2.85
2.60
2.10
Valuation Metrics (x)
$3,890.2
Enterprise Value / Revenue
1.1x
1.1x
1.0x
1,651.2
Enterprise Value / EBITDA
4.3x
3.8x
3.6x
–
–
320.0
$5,221.4
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
14.3x
13.9x
1.4x
10.7x
10.9x
1.2x
8.8x
9.7x
1.1x
Price / Volume — Last Twelve Months
$40.00
7,000
$35.00
6,000
5,000
$25.00
4,000
$20.00
3,000
$15.00
2,000
$10.00
1,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
86
Volume (000s)
Price ($USD)
$30.00
Swift Energy Company
Ticker:
SFY
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$6.85
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1979
Location:
313
Houston, TX (United States)
Swift Energy Company is engaged in acquiring, exploring, developing, and operating oil and natural gas properties. It focuses on oil and natural gas reserves in Texas, as well
as onshore and in the inland waters of Louisiana. As of December 31, 2013, the company had estimated proved reserves of 219.2 million barrels of oil equivalent. Swift
Energy Company was founded in 1979 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$6.85
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
45.2%
$15.14
6.30
1,802
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
$556.2
348.8
$0.21
0.12
NA
FY 2015E
FY 2016E
$518.9
297.1
($0.67)
(0.58)
NA
$499.6
285.9
($1.74)
(1.02)
NA
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$300.3
Enterprise Value / Revenue
2.7x
2.8x
3.0x
Total Debt
1,178.3
Enterprise Value / EBITDA
4.2x
5.0x
5.2x
–
–
0.6
$1,478.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
32.2x
NM
3.4x
NM
NM
4.0x
NM
NM
4.1x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$16.00
12,000
$14.00
10,000
8,000
$10.00
$8.00
6,000
$6.00
4,000
$4.00
2,000
$2.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
87
Volume (000s)
Price ($USD)
$12.00
Targa Resources Partners LP
Ticker:
NGLS
Jefferies Rating:
Hold
Price:
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$61.08
Pric
(as of Oct 31, 2014)
$125.00
Business Description
Founded:
Employees:
2006
Location:
950
Houston, TX (United States)
Targa Resources Partners LP is engaged in the ownership, operation, acquisition, and development of midstream energy assets in the United States. The company operates
through two divisions, Gathering and Processing, and Logistics and Marketing. The Gathering and Processing division is involved in gathering, compressing, dehydrating,
treating, conditioning, processing, and marketing natural gas; and gathering crude oil. This division gathers and processes natural gas from the Permian Basin in West Texas
and Southeast New Mexico; the Fort Worth Basin, including the Barnett Shale in North Texas; and the Williston Basin in North Dakota, as well as from the onshore region of
the Louisiana Gulf Coast and the Gulf of Mexico. Its gathering systems comprise approximately 11,300 miles of natural gas pipelines. This division sells its residue gas to
end users, such as commercial and industrial customers; and natural gas and electric utilities serving individual consumers. The Logistics and Marketing division converts
mixed natural gas liquids (NGLs) into NGL products; provides value added services, including fractioning, storing, terminaling, transporting, distributing, and marketing NGLs
and NGL products; and stores refined petroleum products and crude oil, as well as supplies and markets natural gas. This division serves end-users of NGL products, such as
petrochemical and refining companies, and propane markets for heating, cooking, or crop drying applications through pipelines, barges, trucks, and rail cars. It owns or
operates 39 storage wells with a storage capacity of approximately 64 million barrels. As of December 31, 2013, this division’s transportation assets consisted of
approximately 700 railcars, 80 owned and leased transport tractors, and 18 company-owned pressurized NGL barges. The company was founded in 2006 and is
headquartered in Houston, Texas. Targa Resources Partners LP is a subsidiary of Targa Resources Corp.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$61.08
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
73.2%
$83.49
48.09
410
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$8,985.1
961.0
$3.09
2.83
2.92
$9,916.0
1,214.6
$3.25
2.90
2.50
$9,357.6
1,307.3
$3.39
3.32
2.94
1.1x
Valuation Metrics (x)
$7,008.5
Enterprise Value / Revenue
1.1x
1.0x
2,961.2
Enterprise Value / EBITDA
10.5x
8.3x
7.8x
233.8
–
67.3
$10,136.2
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
19.8x
21.6x
3.1x
18.8x
21.0x
2.4x
18.0x
18.4x
2.3x
Price / Volume — Last Twelve Months
$90.00
3,000
$80.00
2,500
$70.00
Price ($USD)
2,000
$50.00
1,500
$40.00
$30.00
1,000
$20.00
500
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
88
Volume (000s)
$60.00
Technip SA
Ticker:
TEC
Jefferies Rating:
NA
Price:
Exchange:
ENXTPA
Jefferies Analyst:
Not Covered
Target Price:
$58.28
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1958
Location:
40,000
Paris, France
Technip SA provides project management, engineering, and construction services to the energy industry worldwide. It operates in two segments, Subsea and
Offshore/Onshore. The Subsea segment offers integrated design, engineering, manufacturing, and installation services for infrastructures and subsea pipe systems used in oil
and gas production and transportation. Its services include delivery of subsea systems, primarily pipelay and subsea construction; maintenance and repair of existing subsea
infrastructures; and replacement or removal of subsea equipment. This segment also manufactures rigid and flexible subsea pipelines, as well as umbilicals. The
Offshore/Onshore segment designs and builds various facilities for the development of onshore oil and gas fields, as well as renovates existing facilities by modernizing
production equipment and control systems; pipeline systems for natural gas, crude oil, oil products, water, and liquid sulfur; natural gas treatment and liquefaction facilities;
complex and single refinery units; hydrogen and synthesis gas production units; sulfur recovery units and storage units; ethylene production plants; and petrochemical and
fertilizers processing plants. It is also engaged in the engineering studies and execution of production units in the fields of biofuels, geothermal, concentration solar power,
and offshore wind farms; and provision of engineering and construction services to mining and metal projects. In addition, this segment designs, manufactures, and installs
fixed and floating platforms for drilling, producing, and processing oil and gas reserves located offshore shallow waters, and deep and ultra-deep water fields. Technip SA
operates in approximately 48 countries on 5 continents. It has a strategic agreement with Inocean to develop offshore loater engineering services for the Norwegian
continental shelf and other offshore markets. The company was founded in 1958 and is headquartered in Paris, France.
Trading Data
(as of Oct 31, 2014)
($EUR)
Share Price
$58.28
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
69.8%
$83.47
54.24
578
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($EUR millions, except per share data)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($EUR millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$10,536.6
1,055.3
$4.30
4.43
–
$11,381.6
1,323.6
$5.89
5.88
–
$11,367.7
1,361.7
$6.35
6.07
–
Valuation Metrics (x)
$6,566.8
Enterprise Value / Revenue
0.6x
0.5x
0.5x
2,640.9
Enterprise Value / EBITDA
5.5x
4.4x
4.3x
4.8
–
3,387.4
$5,825.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
13.5x
13.2x
2.5x
9.9x
9.9x
2.0x
9.2x
9.6x
1.9x
Price / Volume — Last Twelve Months
$90.00
4,000
$80.00
3,500
$70.00
3,000
Price ($EUR)
2,500
$50.00
2,000
$40.00
1,500
$30.00
1,000
$20.00
500
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
89
Volume (000s)
$60.00
TMK OAO
Ticker:
TMKS
Jefferies Rating:
NA
Price:
Exchange:
LSE
Jefferies Analyst:
Not Covered
Target Price:
$7.83
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
2001
Location:
516
Moscow, Russia
OAO TMK manufactures and exports steel pipes worldwide. The company offers seamless oil country tubular products, which are used for drilling, operation, and
maintenance of oil and gas wells; seamless line pipes for use in the construction of oil and gas pipelines; and seamless industrial pipes that are used in the chemical,
petrochemical, food, and nuclear industries, as well as for the production of steam boilers, bearings, and various machine parts and components. It also provides welded oil
country tubular products that are used for drilling, operation, and maintenance of oil and gas wells; welded line pipes for use in the construction of oil and gas trunk
pipelines and low pressure steam lines; and welded large diameter pipes, which are used for the construction of oil and gas trunk pipelines, oil field pipelines, general
purpose pipelines, and pipelines for heat supply networks and nuclear power stations. In addition, the company offers premium threaded connections; and welded industrial
pipes for use in engineering, construction, housing, and utilities sector, as well as for other applications. Further, it provides oilfield services; and services in heat treating,
protective coating, premium connections threading, warehousing, and pipe repairing. The company’s products are used in the oil-and-gas sector, the chemical and
petrochemical, energy and machine-building, construction and municipal housing, shipbuilding, aviation and aerospace, and agriculture industries. It sells its products
primarily in Russia, the United States, the Middle East, Europe, North Africa, South and Southeast Asia, and the CIS through distributors and dealers. OAO TMK was
founded in 2001 and is based in Moscow, the Russian Federation.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$7.83
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
59.2%
$13.22
6.67
162
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$6,201.6
853.5
$0.91
0.82
NA
$6,686.3
997.9
$1.34
1.29
NA
$7,015.0
1,096.1
$1.52
1.49
NA
Valuation Metrics (x)
$1,693.3
Enterprise Value / Revenue
0.9x
0.8x
0.8x
3,755.9
Enterprise Value / EBITDA
6.4x
5.4x
4.9x
93.0
–
122.4
$5,419.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.6x
9.5x
4.4x
5.8x
6.1x
3.8x
5.1x
5.2x
3.4x
$14.00
7,000
$12.00
6,000
$10.00
5,000
$8.00
4,000
$6.00
3,000
$4.00
2,000
$2.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
90
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Ultra Petroleum Corp.
Ticker:
UPL
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$22.80
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1979
Location:
124
Houston, TX (United States)
Ultra Petroleum Corp., an independent oil and gas company, is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas
properties in the United States. It primarily focuses on developing a tight gas sand trend located in the Green River Basin of southwest Wyoming; and assessing, exploring,
and developing its position in the Marcellus Shale and other horizons located in the north-central Pennsylvania area of the Appalachian Basin. As of December 31, 2013, the
company owned interests in approximately 49,000 net acres in Wyoming covering approximately 190 square miles; and 250,000 net acres in Pennsylvania. Ultra Petroleum
Corp. was founded in 1979 and is headquartered in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$22.80
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
72.5%
$31.43
18.59
2,403
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$1,211.8
815.6
$2.76
2.49
NA
$1,392.9
922.2
$2.81
2.58
NA
$1,692.3
1,188.6
$3.87
3.31
NA
Valuation Metrics (x)
$3,493.2
Enterprise Value / Revenue
5.7x
5.0x
4.1x
3,426.0
Enterprise Value / EBITDA
8.5x
7.5x
5.8x
–
–
1.4
$6,917.8
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.3x
9.1x
4.2x
8.1x
8.8x
3.7x
5.9x
6.9x
2.9x
Price / Volume — Last Twelve Months
$35.00
12,000
$30.00
10,000
Price ($USD)
8,000
$20.00
6,000
$15.00
4,000
$10.00
2,000
$5.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
91
Volume (000s)
$25.00
USA Compression Partners, LP
Ticker:
USAC
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$22.80
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1998
Location:
360
Austin, TX (United States)
USA Compression Partners, LP provides natural gas compression services under term contracts with customers in the oil and gas industry in the United States. The company
engineers, designs, operates, services, and repairs its compression units and maintains related support inventory and equipment. It offers compression services in various
shale plays, including Marcellus, Eagle Ford, Utica, Mississippi Lime, Granite Wash, Wood Ford, Barnett, Permian Basin, Haynesville, and Fayetteville shales. As of
December 31, 2013, the company had approximately 1,202,374 of fleet horsepower in its fleet. It serves oil companies and independent producers, processors, gatherers,
and transporters of natural gas and crude oil. USA Compression GP, LLC operates as the general partner of USA Compression Partners, LP. The company was founded in
1998 and is headquartered in Austin, Texas. USA Compression Partners, LP is a subsidiary of USA Compression Holdings, LP.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$22.80
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
79.4%
$28.73
19.51
121
December
Enterprise Value Calculation
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
($USD millions, except per unit data)
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
($USD millions)
Market Capitalization (fully-diluted)
Financial Projections
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
$223.4
113.5
$0.61
0.47
NA
$287.7
154.8
$1.04
0.84
NA
$318.9
186.9
NA
0.91
NA
Valuation Metrics (x)
$1,008.7
Enterprise Value / Revenue
6.5x
5.1x
4.6x
452.0
Enterprise Value / EBITDA
12.9x
9.4x
7.8x
–
–
0.0
$1,460.6
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
37.4x
48.5x
4.0x
21.9x
27.2x
2.9x
NA
25.1x
2.4x
$30.00
6,000
$25.00
5,000
$20.00
4,000
$15.00
3,000
$10.00
2,000
$5.00
1,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
92
Volume (000s)
Price ($USD)
Price / Volume — Year to Date
Vantage Drilling Company
Ticker:
VTG
Jefferies Rating:
Hold
Price:
$0.97
Exchange:
AMEX
Jefferies Analyst:
Bradley Handler
Target Price:
$2.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
2007
Location:
781
Houston, TX (United States)
Vantage Drilling Company, through its subsidiaries, provides offshore contract drilling services to the oil and natural gas companies in the United States and internationally.
It offers drilling units, related equipment, and work crews under contract to drill oil and natural gas wells. The company also provides construction supervision and operations
management services for drilling units owned by others. As of February 28, 2014, it owned a fleet of seven drilling units, including three ultra-deepwater drillships and four
ultra-premium jackup rigs. The company primarily serves multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil
and natural gas producers. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$0.97
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
47.9%
$2.02
0.80
1,920
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
FY 2014E
FY 2015E
FY 2016E
$869.3
415.6
$0.12
0.15
0.25
$888.9
447.1
$0.22
0.21
0.40
$972.9
442.0
$0.16
0.14
0.30
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$297.8
Enterprise Value / Revenue
3.5x
3.4x
3.1x
Total Debt
2,785.5
Enterprise Value / EBITDA
7.2x
6.7x
6.8x
–
–
81.3
$3,001.9
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
8.1x
6.6x
6.7x
4.4x
4.7x
6.2x
5.9x
6.9x
6.3x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$2.50
14,000
12,000
$2.00
Price ($USD)
$1.50
8,000
6,000
$1.00
4,000
$0.50
2,000
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
93
Volume (000s)
10,000
W&T Offshore Inc.
Ticker:
WTI
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
$9.09
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
Employees:
1983
Location:
333
Houston, TX (United States)
W&T Offshore, Inc., an independent oil and natural gas producer, together with its subsidiaries, is engaged in the acquisition, exploration, and development of oil and natural
gas properties primarily in the Gulf of Mexico and Texas. The company sells oil, natural gas liquids, and natural gas. It holds working interests in approximately 67 offshore
fields in federal and state waters. As of December 31, 2013, the company had interests in offshore leases covering approximately 1.1 million gross acres spanning across
the outer continental shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama; and onshore leasehold interests in approximately 0.2 million gross acres in Texas.
Its estimated proved reserves totaled 117.7 million barrels of oil equivalent. The company was founded in 1983 and is based in Houston, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$9.09
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
44.8%
$20.29
8.20
1,017
December
Enterprise Value Calculation
Financial Projections
($USD millions, except per share data)
FY 2014E
(Consensus, unless otherwise noted)
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
($USD millions)
$976.0
586.5
$0.08
0.20
NA
FY 2015E
FY 2016E
$981.9
560.0
($0.20)
0.06
NA
$1,239.5
588.7
$0.60
0.21
NA
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$687.7
Enterprise Value / Revenue
1.9x
1.9x
Total Debt
1,224.3
Enterprise Value / EBITDA
3.2x
3.4x
3.2x
–
–
23.8
$1,888.1
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
45.5x
2.1x
NM
NM
2.2x
15.2x
43.3x
2.1x
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
1.5x
$25.00
2,500
$20.00
2,000
$15.00
1,500
$10.00
1,000
$5.00
–
10/13
500
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
94
Volume (000s)
Price ($USD)
Price / Volume — Last Twelve Months
Weatherford International Ltd.
Ticker:
WFT
Jefferies Rating:
Hold
Price:
$16.42
Exchange:
NYSE
Jefferies Analyst:
Bradley Handler
Target Price:
$19.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1972
Location:
67,000
Geneva, Switzerland
Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells
worldwide. The company offers controlled-pressure drilling and testing services, including closed-loop, air, controlled pressure, and underbalanced drilling; drilling services,
such as directional drilling, logging while drilling, measurement while drilling, and rotary steerable systems; and tubular running services, which consist of tubular
connection and installation services for the drilling, completion, and work over of oil or natural gas wells. It also provides drilling tools comprising drilling jars, under reamers,
rotating control devices, down hole tools, drill pipe and related tools, tubular handling equipment, and other pressure-control equipment; drilling and project management
services; wire line services; re-entry, fishing, and thru-tubing services; equipment for cementing operations; liner systems, such as liner hangers; and integrated laboratory
services; and surface logging systems. In addition, the company offers artificial lift systems that include reciprocating rod lift systems, progressing cavity pumps, gas lift
systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, and wellhead systems to produce oil or natural gas from the wells; stimulation and chemicals,
including pressure pumping services, coiled tubing services equipment, and reservoir stimulation hydraulic fracturing services; and completion tools, such as cased hole and
flow control systems, and well, industrial, and sand screens, as well as completion services, including upper and lower completions, and reservoir monitoring. Further, it
provides services, such as inspecting, cleaning, drying, testing, improving production, running, or establishing integrity from the wellhead out, including integrated
management services. The company was founded in 1972 and is headquartered in Geneva, Switzerland.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$16.42
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
66.0%
$24.88
13.07
7,077
December
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
FY 2014E
FY 2015E
FY 2016E
$15,184.9
3,113.2
$0.26
1.07
1.05
$16,077.8
3,591.8
$1.54
1.56
1.40
$16,804.1
4,011.6
$1.89
1.89
1.80
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$12,706.3
Enterprise Value / Revenue
1.4x
1.3x
1.2x
8,719.0
Enterprise Value / EBITDA
6.7x
5.8x
5.2x
79.0
–
582.0
$20,922.3
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
NM
15.4x
2.8x
10.7x
10.5x
2.4x
8.7x
8.7x
2.2x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$30.00
40,000
35,000
$25.00
30,000
Price ($USD)
25,000
$15.00
20,000
15,000
$10.00
10,000
$5.00
–
10/13
5,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
95
Volume (000s)
$20.00
Western Gas Partners, LP
Ticker:
WES
Jefferies Rating:
NA
Price:
Exchange:
NYSE
Jefferies Analyst:
Not Covered
Target Price:
Employees:
NM
Location:
$69.90
Pric
(as of Oct 31, 2014)
–
Business Description
Founded:
2007
The Woodlands, TX (United States)
Western Gas Partners, LP owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; north-central Pennsylvania;
and the Mid-Continent. The company is engaged in gathering, compressing, processing, treating, and transporting natural gas, condensate, natural gas liquids (NGL), and
crude oil. Its assets include 13 gathering systems, 8 natural gas treating facilities, 9 natural gas processing facilities, 3 NGL pipelines, and 3 natural gas pipelines. Western
Gas Holdings, LLC serves as the general partner of Western Gas Partners, LP. The company was founded in 2007 and is headquartered in The Woodlands, Texas.
Trading Data
(as of Oct 31, 2014)
($USD)
Unit Price
$69.90
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
87.6%
$79.81
57.70
317
December
Enterprise Value Calculation
($USD millions)
Market Capitalization (fully-diluted)
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Financial Projections
($USD millions, except per unit data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPU (GAAP)
EPU (Adjusted)
EPU (Jefferies)
$1,318.1
643.1
$2.27
2.27
NA
$1,576.4
790.2
$2.32
2.49
NA
$1,834.9
973.5
$3.32
3.17
NA
Valuation Metrics (x)
$8,847.3
Enterprise Value / Revenue
8.4x
7.0x
6.0x
2,082.9
Enterprise Value / EBITDA
17.1x
13.9x
11.3x
159.4
–
67.8
$11,021.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
30.8x
30.7x
3.2x
30.1x
28.0x
2.6x
21.0x
22.0x
2.1x
Price / Volume — Last Twelve Months
$90.00
7,000
$80.00
6,000
$70.00
Price ($USD)
$50.00
4,000
$40.00
3,000
$30.00
2,000
$20.00
1,000
$10.00
–
10/13
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
96
Volume (000s)
5,000
$60.00
Williams Companies, Inc.
Ticker:
WMB
Jefferies Rating:
Buy
Price:
$55.51
Exchange:
NYSE
Jefferies Analyst:
Christopher Sighinolfi
Target Price:
$70.00
Pric
(as of Oct 31, 2014)
Business Description
Founded:
Employees:
1908
Location:
4,909
Tulsa, OK (United States)
The Williams Companies, Inc. operates as an energy infrastructure company. The company’s Williams Partners segment owns and operates natural gas pipeline system
extending from Texas, Louisiana, Mississippi, and the offshore Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware,
Pennsylvania, and New Jersey to the New York City metropolitan area. This segment also owns and operates a natural gas pipeline system extending from the San Juan basin
in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas,
Washington; gulfstream natural gas pipeline system extending from the Mobile Bay area in Alabama to markets in Florida; and constitution pipeline that connects its
gathering system in Susquehanna County, Pennsylvania to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems. In addition, this segment gathers, treats, and
processes natural gas; produces, fractionates, stores, markets, and transports natural gas liquids (NGL); and offers deepwater production handling and crude oil
transportation services, as well as transports and stores natural gas to local natural gas distribution companies, municipal utilities, direct industrial users, electric power
generators, and natural gas marketers and producers. Its Williams NGL & Petchem Services segment extracts, fractionates, treats, stores, and sells propane, propylene,
normal butane, isobutane/butylene, and condensate to users in energy and petrochemical industries. The company’s Access Midstream Partners segment offers gathering,
treating, and compression services to other producers. As of August 26, 2014, it owned interests in or operates 15,000 miles of natural gas pipelines; 1,800 miles of NGL
transportation pipelines; and approximately 10,000 miles of oil and gas gathering pipelines. The company was founded in 1908 and is headquartered in Tulsa, Oklahoma.
Trading Data
(as of Oct 31, 2014)
($USD)
Share Price
$55.51
% of 52-Week High
52-Week High
52-Week Low
90-Day Avg. Daily Trading Volume (000s)
Fiscal Year End
92.9%
$59.77
33.98
6,539
December
Financial Projections
($USD millions, except per share data)
(Consensus, unless otherwise noted)
FY 2014E
FY 2015E
FY 2016E
Revenue
EBITDA
EPS (GAAP)
EPS (Adjusted)
EPS (Jefferies)
$7,820.0
2,911.9
$2.96
0.91
0.96
$10,339.5
4,350.1
$1.50
1.45
1.41
$11,102.2
4,317.1
$1.79
1.63
1.55
Enterprise Value Calculation
($USD millions)
Valuation Metrics (x)
Market Capitalization (fully-diluted)
$41,491.7
Enterprise Value / Revenue
9.4x
7.1x
6.6x
20,941.0
Enterprise Value / EBITDA
25.3x
16.9x
17.1x
11,552.0
–
302.0
$73,682.7
Price / Earnings (GAAP)
Price / Earnings (Adjusted)
Total Debt / EBITDA
18.7x
NM
7.2x
37.0x
38.4x
4.8x
31.1x
34.1x
4.9x
Total Debt
Minority Interest
Preferred Equity
Cash and Cash Equivalents
Enterprise Value
Price / Volume — Last Twelve Months
$70.00
40,000
$60.00
35,000
30,000
Price ($USD)
25,000
$40.00
20,000
$30.00
15,000
$20.00
10,000
$10.00
–
10/13
5,000
11/13
12/13
1/14
2/14
3/14
4/14
Volume
5/14
6/14
7/14
8/14
9/14
10/14
Price
Sources: Company filings, Company website and Capital IQ as of October 31, 2014. Balance sheet data is as of the most recent SEC filing available on October 31, 2014.
Jefferies 2014 Annual Global Energy Conference
97
Volume (000s)
$50.00
Conference Notes
Jefferies 2014 Annual Global Energy Conference
98
Jefferies Biographies
Jefferies 2014 Annual Global Energy Conference
99
Conference Notes
Jefferies 2014 Annual Global Energy Conference
100
Jefferies Energy Investment Banking
Ralph Eads III, Vice Chairman of Jefferies LLC
(281) 774-2015 / reads@jefferies.com
Ralph Eads is Vice Chairman of Jefferies LLC and Global Head of Jefferies’ Energy
Investment Banking Group and works with clients in the U.S. and internationally. Under his
leadership, Jefferies has established one of the leading energy investment banking practices
in the world. His extensive M&A experience includes working on over $150 B in energy M&A
transactions. Notable transactions completed by the firm include $28 B of unconventional
asset transactions for Chesapeake Energy, the sale of Samson Investment Co. to a KKR-led
investor group ($7.2 B), the sale of East Resources to Shell ($4.7 B), Atlas Energy’s
acquisition by Chevron ($4.3 B), and Brigham Exploration’s sale to Statoil ($4.6 B). Mr.
Eads has led the firm’s international expansion, helping Jefferies to complete transactions
with 15 of the 20 largest oil and gas companies in the world. The firm has also been the
leader in raising private equity for the industry, completing transactions involving KKR, EIG,
Kelso, CIC and Temasek.
Prior to joining the firm, Mr. Eads was President of Randall & Dewey, which was acquired by
Jefferies in 2005. Previously he served as Executive Vice President of El Paso Corporation
where he was responsible for its unregulated businesses. Before joining El Paso, he was head
of the Energy Group of Donaldson, Lufkin & Jenrette and has held senior positions at S.G.
Warburg and Lehman Brothers. Mr. Eads serves on the Board of Trustees of Duke University.
Ajay Khurana, Co-Head of Energy Americas and Managing Director
(281) 774-2137 / akhurana@jefferies.com
Ajay Khurana is a Managing Director and Co-Head of Energy Investment Banking for the
Americas. Over his career, Mr. Khurana has completed over $100 B in transactions. Mr.
Khurana's transaction experience includes M&A for public and private companies, debt and
equity financings in the public and private capital markets, joint ventures and other
structured transactions, and the assessment of strategic alternatives and shareholder value
maximization. Recent transactions include the sale of GeoSouthern Energy to Devon Energy
for $6.0 B, the $3.0 B private financing of American Energy Utica, the sale of Enduring
Resources to American Energy – Permian Basin for $2.5 B and the $1.7 B private financing
of FourPoint Energy. Prior to joining Jefferies, Mr. Khurana worked at Morgan Stanley, Intel
Capital and SG Cowen.
Stephen M. Straty, Co-Head of Energy Americas and Managing Director
(972) 701-3240 / sstraty@jefferies.com
Stephen Straty is Americas Co-Head of Energy Investment Banking at Jefferies LLC and has
over 30 years of experience in investment banking. Prior to joining Jefferies in 2008, Mr.
Straty was an executive at Bear, Stearns & Co. Inc., for 17 years, serving as Senior Managing
Director and Head of the Natural Resources Group. Mr. Straty has extensive experience in
serving a broad array of energy clients, having completed over $75 B in merger and
acquisition and financing assignments during the past 10 years. Mr. Straty worked at Smith
Barney, Harris, Upham & Co. for 10 years focusing on the energy sector, and prior to that
worked in the investment banking division at Prudential Insurance, advising on private
placements of debt and equity as well as leveraged buyouts.
Jefferies 2014 Annual Global Energy Conference
101
Jefferies Energy Investment Banking (Cont’d)
Peter Bowden, Global Head of Midstream and Managing Director
(281) 774-2138 / pbowden@jefferies.com
Peter Bowden is a Managing Director and Global Head of Midstream Energy Investment
Banking with Jefferies LLC. Before joining Jefferies in July 2012, Mr. Bowden was a
Managing Director at Morgan Stanley, where he was Head of Midstream / MLPs. Mr.
Bowden has advised on over $100 B of Midstream M&A transactions during his 18-year
career in the industry, including several of the most significant mergers, acquisitions and
joint ventures in the sector. While at Morgan Stanley, he advised El Paso in its $38 B
merger with Kinder Morgan, MarkWest in its Marcellus and Utica joint ventures with The
Energy & Minerals Group, First Reserve in its $1.4 B sale of BORCO to Buckeye, Chevron in
the sale of its Perth Amboy facility to Buckeye and its Edmonton-based iso-octane business
to Keyera, and Magellan in its acquisition of the Texas City refined products system from BP.
Since joining Jefferies, he has advised Kinder Morgan Energy Partners and Kinder Morgan
Management in the $140 B amalgamation of the Kinder Morgan entities, Chesapeake
Energy in its $5 B exit from Midstream, Copano in its $5 B sale to Kinder Morgan and
Inergy in its $7.3 B merger with Crestwood. In addition, he has served as the exclusive
financial advisor to Chevron in its divestiture of eight Midstream assets for total
consideration of over $2.5 B. Mr. Bowden received his undergraduate degree, with honors,
from Harvard University and his law degree from the University of Virginia.
Joseph “Joe” Gladbach, Managing Director & Co-Head of A&D Services
(281) 774-2026 / jgladbach@jefferies.com
Joe Gladbach is a Managing Director at Jefferies LLC in the Energy Investment Banking
Group. He is Co-Head of A&D Services where he specializes in upstream M&A. He has
completed over $40 B in successful transactions involving independents and integrated oil
& gas companies. Mr. Gladbach is a natural gas expert whose training and experience
includes worldwide natural marketing, gas storage, LNG and gas-to-liquids project
development. Prior to his tenure with Jefferies, Mr. Gladbach worked 18 years for Amoco
Corporation focusing on various domestic and international roles in A&D, Strategic Planning,
natural gas marketing, LNG project development, and reservoir engineering. Most recently,
Mr. Gladbach has played a leading role with his colleagues at Jefferies in concluding a series
of groundbreaking gas shale transactions on behalf of their clients.
Warren R. Keyes, Jr., Managing Director & Head of U.S. Acquisitions and Divestment Team
(281) 774-2022 / wkeyes@jefferies.com
Warren Keyes is a Managing Director and Head of Technical Services at Jefferies LLC in the
Energy Investment Banking Group. Mr. Keyes is head of the U.S. Acquisitions and
Divestment Team, which specializes in the economics and technical requirements of
acquiring, divesting and accurately valuing producing properties. With 35 years of industry
experience, 24 in the MA&D arena, he is an expert in navigating the U.S. A&D market. Mr.
Keyes has been with the Energy team since 1993, including 12 years with Randall & Dewey.
Previously, Mr. Keyes worked at Amoco, where he managed the company’s Permian Basin
business unit technical team for five years and was a key member of the A&D team that
completed many successful transactions.
Jefferies 2014 Annual Global Energy Conference
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Jefferies Energy Investment Banking (Cont’d)
Jay Levy, Head of Oilfield Services and Managing Director
(713) 308-4522 / jlevy@jefferies.com
Jay Levy is a Managing Director and Head of Oilfield Services at Jefferies LLC in the Energy
Investment Banking Group. Prior to joining the firm, he worked in the energy investment
banking groups of RBC Capital Markets and Howard, Weil, Labouisse, Friedrichs
Incorporated. He has 24 years of experience in energy investment banking and holds a BS in
Economics from Southern Methodist University.
William “Bill” Marko, Managing Director & Co-Head of A&D Services
(281) 774-2068 / wmarko@jefferies.com
William "Bill" Marko is a Managing Director at Jefferies LLC in the Energy Investment
Banking Group. Mr. Marko is Co-Head of A&D Services and has managed more than $60 B
of asset and corporate transactions. His client base consists of many of the world's 50
largest oil and gas companies. Prior to joining Randall & Dewey, subsequently purchased by
Jefferies, Mr. Marko worked more than 18 years in various engineering, operations and
commercial roles at Mobil Oil, followed by COO of Madison Energy Advisors, a transaction
advisory firm. With more than 34 years of industry experience in worldwide acquisition,
divestment and new business development, he has evaluated transactions in all major U.S.
basins and more than 45 countries. Mr. Marko is a registered Professional Engineer in
Louisiana and is an active member of IPAA, having previously served on its SE Region Board
and SPE, having previously served on the Gulf Coast Section (Houston) Board. Mr. Marko is
a graduate of Tulane with a B.S. in Mechanical Engineering and a M.S. in Petroleum
Engineering. He currently serves on the Tulane President’s Council and the Board of the
School of Science and Engineering.
Jack P. Randall, Co-Founder of Jefferies Randall & Dewey
(281) 203-5291 / jrandall@jefferies.com
Jack Randall is Co-founder of Randall & Dewey, which was acquired by Jefferies in 2005.
Co-founding the firm in 1989, Mr. Randall and Ken Dewey pioneered the oil and gas
transaction advisory business by combining sophisticated transaction ability with hands-on
E&P expertise. With over 35 years of industry experience, Mr. Randall maintains key
relationships with industry leaders worldwide and offers clients the benefit of his contacts,
reputation, technical expertise and business perspective. Previously, he worked at Amoco
Production Company, where he led the E&P M&A group. He is a former board member of
XTO Energy (NYSE) and Esenjay Exploration Inc. (NASDAQ). He sits on numerous advisory
boards including the M.D. Anderson Cancer Center, The University of Texas College of
Engineering, and the Sam Houston Council Boy Scouts of America. He currently chairs The
Energy Institute at UT – Austin and is a member of the UT Chancellor’s Executive
Committee. He received his MS and BS in engineering from UT - Austin.
Jefferies 2014 Annual Global Energy Conference
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Jefferies Equity Research
Jason Gammel, Managing Director
+44 (0)20 7029 8709 / jason.gammel@jefferies.com
Associates: Marc Kofler
Jason Gammel joined Jefferies in March 2014, as a Senior Equity Research Analyst covering
global integrated oil & gas and has over 25 years of oil & gas experience. Prior to joining
Jefferies, he spent 6 years at Macquarie as a Division Director and research analyst covering
global integrated oil in the UK (2010-2013) and domestic integrated oil and E&P stocks in
the US (2007-2010). He also coordinated the global oil & gas research product. Previously,
Jason was a Senior Vice President and Senior Oil and Natural Gas research analyst in the
integrated oil, E&P and independent refining sectors at Prudential Equity Group from 20012007. Prior to his move to sell-side research, he was employed by Chevron Corporation for
13 years in a variety of roles in the International Upstream division and the Treasury
Department.
Brad Handler, Managing Director
(212) 336-7249 / brad.handler@Jefferies.com
Associates: Eduardo Royes, Francis Diebold, Saurabh Pant
Brad Handler, a Managing Director at Jefferies LLC, has research responsibility for U.S.
Oilfield Services and Drilling. He joined Jefferies in 2012 following four years at Credit
Suisse and 14 years total experience in equity research. Brad’s professional experience prior
to sell-side equity research includes six years in management at a firm that is now part of
The Linde Group, a global industrial gas company, and commercial lending at a firm that is
now part of Bank of America. Brad is a graduate of Johns Hopkins University and has an
MBA from Northwestern University J.L. Kellogg School of Management.
Marc Kofler, Vice President
+44 (0)20 7029 8671 / marc.kofler@jefferies.com
Marc Kofler joined Jefferies in February 2014 and is a member of the European Energy team
covering Integrated Oils. Prior to joining Jefferies, Marc spent seven years as a research
analyst in the Oil and Gas sector at Macquarie and Citi. Marc holds an MA in Geography
from Fitzwilliam College, Cambridge.
Jack Lu, Associate
+852 3743 8020 / jlu@jefferies.com
Jack Lu joined Jefferies in November 2010, covering the China oil service and chemical
sectors. He has six years' experience in equity research. Prior to Jefferies, he worked at
Evalueserve, based in Shanghai, supporting research analysts of a top-tier investment bank
in Oil & Gas and Metals & Mining sectors. He graduated from China University of Petroleum
with a Master's degree in chemical engineering in 2007.
Jefferies 2014 Annual Global Energy Conference
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Jefferies Equity Research (Cont’d)
Arya Sen, Vice President
+91 2242246122 / asen@jefferies.com
Arya Sen is a vice president and research analyst covering Indian oil & gas and mid-cap
stocks. Prior to joining Jefferies, Arya was a research analyst at Credit Suisse covering midcap stocks and equity strategy in India. He has also worked as a management consultant
with AT Kearney. Arya holds a Bachelor's degree in electrical engineering from IIT Kharagpur
and a Master's degree in management from IIM Ahmedabad.
Christopher Sighinolfi, Senior Vice President
(212) 707-6420 / csighino@Jefferies.com
Associates: Corey Goldman, Christopher Tillett
Christopher Sighinolfi, CFA is a Senior Vice President and equity research analyst covering
diversified natural gas companies and energy Master Limited Partnerships (MLPs). Prior to
joining Jefferies in May 2013, Chris spent seven years as a member of the UBS energy
research team. From 2006-2009, Chris helped launch UBS coverage of the US coal sector
and, in 2010, transitioned to focus solely on natural gas related companies. Since 2010,
Chris has been covering the integrated & regulated natural gas sector, MLPs, and the Natural
Gas Liquid (NGL) market. He graduated from the University of Pennsylvania with a BA in
Philosophy, Politics, and Economics and is also a CFA charterholder.
Mark Wilson, Senior Vice President
+44 (0)20 7029 8691 / mark.wilson@jefferies.com
Associates: Niki Kouzmanov, Mark Tabrett
Mark Wilson joined Jefferies in March 2014, following 6 years at Macquarie researching
European E&P’s and Oil Service companies. Prior to equity research, Mark worked for 10
years in the Oil field industry with Baker Hughes, principally as a Wireline Engineer in Saudi
Arabia for 5 years, followed by 4 years as Operations Manager for Continental Europe. Mark
is a Chartered Engineer with the Institute of Materials, Minerals and Mining (CEng IOM3),
holds a Bachelor of Engineering Degree from the University of Manchester and an INSEAD
MBA.
Laban Yu, Managing Director
+852 3743 8047 / lyu@jefferies.com
Associates: Joseph Fong, Po Wei, Jack Lu, Brian Lam
Laban Yu is a Managing Director and Head of Asia Energy and Commodities research, based
in Hong Kong. He has covered energy and commodities for ten years and was ranked No. 1
Asia Energy Analyst by Asia Money in 2011 and 2012. He covered China oil and gas at
Macquarie as well as MainFirst Securities. Prior to coming to Asia, Laban was an Equity
Associate at Lehman in New York. Prior to finance, Laban worked in new media in Beijing, as
an engineer at Xerox and GM, and as a school teacher in Cameroon. Mr. Yu has a Master's in
International Affairs from Columbia University and a BS in Mechanical Engineering from
Cornell University. Laban speaks English, Mandarin, French, and West African Pidgin.
Jefferies 2014 Annual Global Energy Conference
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Important Disclosures
Jefferies 2014 Annual Global Energy Conference
106
Important Disclosures
Please contact your Jefferies representative for copies of the most recent research reports on individual companies.
This material has been prepared by Jefferies LLC, a U.S.-registered broker-dealer, employing appropriate expertise, and in the belief
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Jefferies 2014 Annual Global Energy Conference
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