1 / 24

mruszczy: NEED LOGOS!!

mruszczy: NEED LOGOS!!. INDEPENDENT PRODUCERS ASSOCIATION OF AMERICA. 2002 M&A Outlook. January 9, 2002. Presenters. Thomas E. Hassen Chairman and Managing Director Global Energy Group (New York) (212) 325-6247 thomas.hassen@csfb.com Timothy E. Perry Director

oro
Download Presentation

mruszczy: NEED LOGOS!!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. mruszczy: NEED LOGOS!! INDEPENDENT PRODUCERS ASSOCIATION OF AMERICA 2002 M&A Outlook January 9, 2002

  2. Presenters • Thomas E. Hassen Chairman and Managing Director Global Energy Group (New York) (212) 325-6247 thomas.hassen@csfb.com • Timothy E. Perry Director Global Energy Group (Houston) (713) 890-1415 timothy.perry@csfb.com

  3. Agenda • Historic M&A Activity • Drivers of M&A Activity • 2002 Outlook

  4. Historic M&A Activity

  5. The Industry is Changing…1980 Source: Factset Database and Bloomberg.

  6. The Industry is Changing…1990 Source: Factset Database and Bloomberg.

  7. The Industry is Changing…1995 Source: Factset Database and Bloomberg.

  8. The Industry is Changing…Present Source: Factset Database and Bloomberg.

  9. M&A Transaction Values Source: JS Herold.

  10. 2001 Corporate Transactions Source: JS Herold. Note: Includes announced 2001 domestic M&A transactions over $200 million in total transaction value.

  11. 2001 Asset Transactions Source: JS Herold. Note: Includes announced 2001 domestic M&A transactions over $200 million in total transaction value.

  12. Transaction Prices Paid Source: JS Herold.

  13. Drivers of M&A Activity

  14. Consolidation Drivers • Production Growth • Increased Scale • Liquidity • Lower Cost of Capital

  15. Production Growth Source: CSFB Equity Research.

  16. Increased Scale • International and deepwater projects require: • long lead times • massive capital • Ability to share intellectual talent across a broad profile of projects • Capital allocation enhanced • can choose among distinct projects depending on risk • commodity mix determines allocation

  17. Liquidity Market Capitalization of Companies on the NYSE Source: JS Herold and Bloomberg.

  18. Liquidity E&P Companies with Market Capitalization of over $50 Million Source: JS Herold and Bloomberg.

  19. Lower Cost of Capital Source: CSFB.

  20. 2002 Outlook

  21. Price to NAV Analysis Source: CSFB Equity Research.

  22. Asset Divestiture Outlook • Several companies have publicly announced or are quietly pursuing upstream asset sales • Energy trading companies selling E&P assets • “Super Independents” divesting of non-core assets following large cash acquisitions • Majors divesting of non-core assets following elimination of pooling requirements • Some of the larger publicly announced sales include: • Devon • El Paso • Burlington

  23. Corporate Transaction Outlook • Corporate E&P consolidation will continue at a rapid pace • Significant commodity price volatility may cause some slowdown in transactions • Confidence will return as prices stabilize and rise • Most corporate transactions will be for stock until share prices improve • Management and Boards will be less interested in cash deals • Stock mergers allow sellers to participate in the industry’s recovery • Cross-border transactions in Canada will be less important • Many key Canadian companies have already been purchased • Canadian stocks are no longer trading at a discount • Unsolicited offer activity is likely

  24. mruszczy: NEED LOGOS!! INDEPENDENT PRODUCERS ASSOCIATION OF AMERICA 2002 M&A Outlook January 9, 2002

More Related