MARKETPLACE QUARTERLY | Q1 2017 …...2016 was EnergyNet’s most successful year in our 17-year...
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Featured Inside Maximizing Divestiture Performance Market Update Texas Tech A&D Presentation Year to Date Review MARKETPLACE QUARTERLY MARKETPLACE QUARTERLY | Q1 2017
Transcript of MARKETPLACE QUARTERLY | Q1 2017 …...2016 was EnergyNet’s most successful year in our 17-year...
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Featured Inside
Maximizing Divestiture Performance
Market Update
Texas Tech A&D Presentation
Year to Date Review
MARKETPLACE QUARTERLYMARKETPLACE QUARTERLY | Q1 2017quarterly
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Question: What makes EnergyNet unique, relative to other oil and gas A&D advisors?
Is it our exemplary customer service? Our love of working with sellers and buyers to close deals? Our superior data platform? I believe all of those are true, but the critical differentiator between EnergyNet and other advisors and brokers is how we treat your assets, if entrusted to handle your divestiture.
Most A&D advisors and boutique investment banks typically want to sell your assets in one large package. They are incentivized by their business model, which groups assets together and brokers “one big deal.” Auction houses, conversely, are incentivized to sell your properties in a number of small pieces – it’s all about quantity and volume. EnergyNet, however, doesn’t restrict itself to one approach or the other, but asks, “What approach is most likely to generate maximum value to the seller?”
We believe different properties’ value can be maximized through different methods. Our unique platform, combined with our extensive industry expertise, provides you the seller – and ultimately the buyer – with a custom approach focused on value that makes sense for both parties.
Is there any doubt that most negotiated sale packages marketed by A&D advisors and investment bankers contain some assets that would be more effectively sold separately? It unnecessarily places a drag on the balance of the properties.
Likewise, is there any question that there are some auction properties that would be more appropriately sold in a sealed bid/negotiated sale? But a negotiated sale takes months and you don’t have months to wait!
It is precisely for these reasons that EnergyNet recently developed the Rapid Cycle Sealed Bid platform (RCSB) while at the same time continuing to improve the online auction process. But how is RCSB different from a protracted negotiated sale?
It is different in three key ways. First, from data intake and deal management to closing and funding, the RCSB requires closer to 45 days than time measured in months. What makes that possible is the fact that EnergyNet’s sellers and buyers have pre-executed a “PSA.” So the sale process, in many cases, is boiled down to one variable – Price!
Second, EnergyNet’s Internet Data Room (IDR) for either RCSB or auction is rapidly populated with precisely what the buyer needs to perform due diligence and evaluate the property’s value, including upside potential. This data is provided by the seller and supplemented with third party information assembled by EnergyNet’s staff of professionals.
Third, EnergyNet subjects the divestiture to unprecedented buyer competition using a number of our proprietary technologies including PinPoint.
Does your A&D Advisor’s approach achieve maximum value?By Bill Britain, Chairman, ENCI Holding Company
FROM THE CHAIRMAN
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EnergyNet’s oil and gas asset transaction advisory business grew substantially in 2016. We successfully closed $745 million in deals, which stands as our best sales year in our company’s 17-year history, and more than doubles 2015 sales volumes. Our mission is to bring exposure, competition, reliability, and liquidity to the upstream oil and gas A&D market. Our firm specializes in helping our clients divest oil and gas properties that are valued between less than $100,000 and $100 million. EnergyNet’s platform offers a structured, professional sales process designed to maximize value for oil and gas properties/interests for the seller.
Some of EnergyNet’s notable selling clients in the past 12 months were Anadarko, BP L48, BHP-Billiton, Chevron, Cabot, Devon, Encana, EOG Resources, EnerVest, Marathon, Merit Energy, OXY, QEP Energy, Sandridge, SM Energy, Yates Petroleum, Unit Petroleum, XTO Energy, and many more.
Over the past few years, the complexity, asset size/value, and client-caliber of the deals EnergyNet facilitates have continued to increase dramatically. We closed a dozen deals valued between $30 million and $80 million each in 2016. These deals had varying characteristics: unconventional as well as conventional packages; operationally-complex as well as royalty/override packages; and primarily PDP as well as primarily acreage with PUD value.
Additionally, government agencies are transitioning to online marketing for the convenience, increased exposure, and better values received. EnergyNet now has exclusive contracts with eight government agencies to market their oil and gas leases and other minerals using on-line auctions and sealed bid platforms. These include the U.S. Bureau of Land Management and the states of Colorado, New Mexico, North Dakota, Texas (General Land Office and the University of Texas System University Lands), Utah, and Wyoming.
As we enter 2017 we see acquisitions and divestments market conditions to be at least as good as last year’s and improving. Our expectation is for the industry to continue having high A&D volume and for EnergyNet to continue to experience strong growth. Evidence of this is seen in the fact that as of January 25, we have already closed $115 million in oil and gas assets year-to-date. Please keep EnergyNet in mind when considering monetizing your assets. Our market dominance is due in large part to our robust, innovative, and intuitive data platform and a marketing process that consistently works.
What does the future of EnergyNet look like moving into 2017?
MARKET UPDATE
2016 was EnergyNet’s most successful year in our 17-year history. Employing auction, RCSB, and negotiated sales for both industry and government clients alike, we brokered the sale of $745 million in properties – an increase of more than 250% over 2015. We expect 2017 to be an even better year as we continue to grow our government lease sales with the U.S. Bureau of Land Management and seven state leasing agencies. We will continue to innovate and improve our capabilities; we will continue to leverage our industry expertise to best serve our customers; and we will never stop focusing on creating maximum value for you, our client.
By Chris Atherton, President, EnergyNet.com, Inc.
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EnergyNet’s primary divestment advantages are:
1) Broad, deep, and frequent access to buyers in the market – 26,000+ registered EnergyNet users
2) High 84% sales close rate
3) Fast 35 to 40 day sales process
4) Comprehensive and thorough data rooms
Finally, if you do not have an EnergyNet user ID and password, I encourage you to create one by following the easy step-by-step instructions on our website, energynet.com. As an EnergyNet user you will have access to all our comprehensive virtual data rooms (VDRs) and will be notified of future acquisition opportunities.
EnergyNet Presentation to Texas Tech Energy Commerce Students
TEXAS TECH PRESENTATION
EnergyNet’s Ethan House, Vice President of Business Development for Mid Continent & TX Panhandle, and John Munroe, Vice President of Government Lease Sales, returned to the Texas Tech University’s Rawls College of Business Administration to address the Energy Commerce students for the fall semester of 2016.
As part of the curriculum, EnergyNet has been invited to be a guest speaker to the upper classmen for the last several years, regarding Acquisitions and Divestments (A&D) online within the oil and gas industry. The presentation focuses on A&D modernization and how its migration to online sales and the increased role of technology might impact their careers.
The presentation concludes with a real interactive property sale, where the students may apply some of the information they were just given regarding metrics and property sale information. The students determine the amount they are willing to bid on a property, and compete against each other for ownership. EnergyNet is proud to have this opportunity to work with Texas Tech Rawls College of Business to share an overview of the A&D portion of our industry with future decision makers.
By John Munroe, VP Engineering & Government Lease Sales, and Ethan House, Vice President - Business Development, Mid-Continent / TX Panhandle
2013 2014 2015 2016
ENERGYNET SALES VOLUME
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An Update on EnergyNet’s Government Lease Sales
GOVERNMENT LEASE SALES UPDATE
EnergyNet is proud to be serving eight government agencies with their sealed bid and online auctions sales through our platform. The agencies we are exclusively contracted to provide online lease sales include: the federal government’s Bureau of Land Management (BLM), Colorado State Land Board, New Mexico State Land Office, North Dakota Department of Trust Lands, Texas General Land Office (GLO) and the University of Texas System University Lands, Utah Trust Lands Administration, and Wyoming Office of State Lands & Investments.
In 2016, the EnergyNet Government Lease Sales platform generated $158 million in proceeds for state trust funds and the BLM.. Success breeds success and the first quarter of 2017 is looking to be very active with the BLM in Colorado, Nevada, New Mexico, and Utah, as well as New Mexico, North Dakota, and Colorado all having sales scheduled.As of the end of January, there are presently over 364 tracts / parcels being offered for bid.
For more information on EnergyNet’s Government Lease offerings, the sale calendar, and information on the registration process, go to energynet.com/govt_listing.pl or call John Munroe, Vice President of Engineering & Government Lease Sales at 713-582-7755.
Year-End ‘16Sellers: 366Properties sold: 14,421Closing days: 210Cumulative sales: $745,096,426
A Breakdown of EnergyNet’s Operations for 2016
YEAR-END REVIEW
What Others Are Saying about EnergyNet This Quarter
IN THE NEWS
"Through innovation, we've taken an antiquated paper-based auction and transformed it into an accessible online bidding system. By creating a digital auction through EnergyNet, the target market pool is expanded beyond local producers and we've opened competition to the global marketplace."
-George P. Bush, Texas Land CommissionerJanuary 17, 2017
John Munroe, VP Engineering & Government Lease Sales
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Events You Won’t Want to Miss in Q1
CALENDAR UPDATE
FEB 8 OIPA Wildcatter WednesdayTulsa, OKFEB 15-17 NAPE SummitHouston, TXFEB 16 SIPES LuncheonHouston, TXFEB 17 ADAM HoustonHouston, TXFEB 22 SPE Business Development MeetingHouston, TX
February March AprilSun Mon Tue Wed Thu Fri Sat
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12 3 4 5 6 7 89 10 11 12 13 14 1516 17 18 19 20 21 2223 24 25 26 27 28 2930
MARCH 1 OIPA Wildcatters WednesdayOklahoma City, OK MARCH 2 ADAM Energy Forum LuncheonDallas, TXMARCH 17 ADAM HoustonHouston, TXMARCH 21 OIPA Wildcatters GalaOklahoma City, OKMARCH 23-24 NSWA Annual Meeting & GalaOklahoma City, OKMARCH 29 SPE Business Development MeetingHouston, TX
FEBRUARY
MARCH
APRIL
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Sun Mon Tue Wed Thu Fri Sat
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Sun Mon Tue Wed Thu Fri Sat
12 3 4 5 6 7 89 10 11 12 13 14 1516 17 18 19 20 21 2223 24 25 26 27 28 2930
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APRIL 3 OGIS New YorkNew York, New YorkAPRIL 3-5 DUG Permian BasinFort Worth, TXAPRIL 6 ADAM Capital Markets SymposiumDallas, TXAPRIL 12 IPAA/TIPRO Leaders in Industry Luncheon, Houston, TXAPRIL 19-21 KIOGA Midyear MeetingGarden City, KSAPRIL 21 ADAM HoustonHouston, TXAPRIL 26 SPE Business Development MeetingHouston, TX
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EnergyNet is proud to have represented the following companies and agencies in 2016.
PROUD PARTNERS
Trust Lands Administration State of Utah School and Institutional Trust Lands Administration
FDICFederal Deposit Insurance Corporation
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EnergyNet.com, Inc.7201 I-40 West, Suite 319Amarillo, TX 79106(806) 351-2953www.energynet.com
STANDARD MAILUS POSTAGE
PAIDAMARILLO, TX
PERMIT NO. 444
CONTACT US TODAY TO DISCUSS YOUR A&D OBJECTIVES!
CHRIS ATHERTONPresident
(832) [email protected]
ETHAN D. HOUSE
VP Business DevelopmentMid-Continent / TX Panhandle
(405) [email protected]
MICHAEL BAKER
VP Business Development Permian Basin / East TX / North LA
(972) [email protected]
RYAN P. DOBBS
VP Business Development Western U.S.
(720) [email protected]
CODY FELTON
VP Business Development Houston / Eastern States
(281) [email protected]
LINDSAY D. BALLARD
ManagerPermian Basin
(432) [email protected]
JOHN KLEE
VP Corporate Business Development(720) 370-2848
JOHN S. MUNROEVP Engineering & Government
Lease Sales(713) 582-7755
