en q2 2015 quarterly
TRANSCRIPT
2nd QUARTER, 2015
FEATURED INSIDE
A&D Market Update - Chris Atherton, President
Compare the Platforms: EnergyNet vs. Traditional Auctions side by side
CONTINUOUS ONLINE AUCTION • RAPID-CYCLE SEALED BID SALES • NEGOTIATED SALES • STATE LEASE SALES
The MarketplaceNavigate
The EnergyNet marketplace has remained resilient despite the crash in commodity prices, having completed over 425 transactions so far in 2015. The EnergyNet marketplace remains open and liquid. There is strong buyer demand for quality assets, signaling a healthy and recovering A&D market. So far in 2015, EnergyNet has received, on average, 12 offers per transaction and approximately 275 unique companies access each individual property data room. The EnergyNet team is interacting with buyers and sellers from all size companies on a daily basis.
The market perception that there is a large bid/ask spread is inaccurate from our experience. The price stability over the past 4 months has provided a platform to allow buyer and seller to come to agreement on value. We are experiencing a busy 2015, with large and small sellers rationalizing their portfolios and selling non-core assets. This presents a great opportunity for acquisitive buyers, and EnergyNet looks forward to providing comprehensive and quality packages for your evaluation. We sold $285MM for our clients in 2014 and we are currently marketing assets for Newfield, Chevron, Rosetta, Devon and others.
Please keep EnergyNet in mind if you choose to sell non-core assets in the coming months. We specialize in selling oil and gas properties valued between $100K and $50MM individually. We market producing fields, operated working interests, non-operated working interests, overrides, royalties, minerals and undeveloped leasehold. Our marketing process, comprehensive virtual data rooms (VDRs) and brokerage role adds significant value to your divestment. EnergyNet facilitates auction, sealed bid and private sale transactions.
Our customers frequently tell us that one of the main reasons they prefer selling assets with EnergyNet rather than our competitor is the ability to sell when they want to sell, not when the auctioneer decides to hold a physical auction. You are the customer; when you are ready to sell, we are ready to get to work. Why wait two or three months to sell your assets? The A&D market for oil and gas assets is always on; so EnergyNet is too.
Buyers are looking for deals every single day. The marketplace of potential buyers is much larger than it once was; ten years ago all the buyers could fit into a hotel ballroom, but today it would take a stadium. EnergyNet reaches right into the offices of over 18,000 registered and qualified bidders across the country. We don’t do it a handful of times a year, we do it every week of the year. Our business development team members in Houston, Midland, Dallas, Oklahoma City and Denver are visible, accessible, and responsive. The A&D business is all about trust, relationships, and reputation and our track record over 15 years proves that we take all three very seriously.
We have a platform and marketing process that consistently works. The market recognizes this and that is why companies like Chevron, XTO, Shell, Devon, Halcon, Bill Barrett, EnerVest, Continental, Bank of America, Encana, Newfield, Magnum Hunter, Callon, Primary, Plantation and hundreds of others hired us to run their divestment processes.
Customer service and executing consistently for our buying and selling clients is our focus. Contact us today to discuss your A&D strategies and objectives.
A&D Market UpdateChris Atherton, President - EnergyNet.com, Inc.
Please join us for one of the following events we'll be hosting or attending!May 21, 2015Western Energy Alliance Golf TournamentArrow Head Golf Club – Littleton, COAttending: Ryan P. Dobbs
May 26, 2015Houston Producers’ Forum - Speaker: Maynard Holt - Tudor, Pickering, Holt & Co.The Petroleum Club of HoustonAttending: Chris Atherton and Cody Felton
May 27, 2015SPE Gulf Coast Business DevelopmentFour Seasons Hotel – Downtown Houston, TXAttending: Chris Atherton and Cody Felton
June 5-9, 2015OIPA Annual MeetingFour Seasons – Las Colinas, TXAttending: Bill Britain, Ethan House, Michael Baker, Lindsay Ballard
June 10, 2015IPAA – TIPRO LuncheonHouston Petroleum ClubAttending: Chris Atherton and Cody Felton
Compare the Divestment Platforms
June 11, 2015Houston Producers’ Forum - Speaker: Alex Epstein The Petroleum Club of HoustonAttending: Chris Atherton and Cody Felton
July 8, 2015IPAA – TIPRO LuncheonHouston Petroleum ClubAttending: Chris Atherton and Cody Felton
July 19-23, 2015Western States Land Commissioners Association2015 Summer Conference, Moab, UtahAttending: Bill Britain and John Munroe
June 3, 2015ADAM Permian – Midland Country Club – Speaker, Will Giraud, Concho ResourcesMidland Country ClubAttending: Lindsay Ballard, Michael Baker, Chris Atherton
August 19-21, 2015Summer NAPEGeorge R. Brown Convention Center – HoustonAttending: Lauren Felton, John Laur, Whitney McEvers, Mike Burdis, Michael Baker, Lindsay Ballard, Ryan Dobbs, Ethan House, Chris Atherton and Bill Britain.
Feature Description EnergyNet Platform
Traditional Auctions
Exposure EnergyNet is the only continuous oil and gas property marketplace that operates all day, every day, with access to 18,000 unique registered bidders, of which 8,200+ participate monthly.
18,000+ unique bidders
8,200+ monthly bidders
600+ bidders per auction closing day
150 to 200 bidders per
auction
Rapid Sales Cycle
Regardless of the number of wells or complexity of the properties, closing a deal with EnergyNet typically takes only 35 days from the receipt of data to funding the transaction, versus 60-90 days with a traditional physical auction.
Sales cycle of 35 days
Sales cycle of 60-90
days
Success-Based Fee
EnergyNet is compensated on a success-based commission only, incentivizing all parties to complete a transaction at the highest value . Success-based
commission only
Commission plus extra
promotional fee and
penalty fees
Competition EnergyNet’s platform provides greater buyer activity, as measured by the number of bids and unique bidders, maximizing value for the seller.
8.4 bidders per transaction
2.3 bidders per
transaction
Evaluation Data
EnergyNet provides all due diligence material in a secure, consistent, organized and complete presentation through our VDR. Hotel/hybrid auctions rely heavily on paper, mailed to bidders or in tubs at the physical auction site.
Comprehensive online data room supplemented by
hardcopy files upon request
Physical copies or PDF scans
Execution More than 1,250 transactions close annually on the EnergyNet platform with more than 45,000 properties transaction since inception.
84% success rate 65% success rate
Liquidity EnergyNet has 140+ auction closing days per year (Tuesday – Thursday of every week, additional days when necessary), while traditional hotel style auctions close 7 times per year, on average. Sell when you want to sell; not when the auctioneer decides to hold an auction.
140+ auction closing days per
year
7 auction closing days
per year
Exclusivity EnergyNet executes in a timely manner. Our goal is to sell your property, not tie it up. We do not cancel or postpone our auctions, so we don’t need to pad our exclusivity period to sell the property.
60 days 180 days
If you have questions, or to learn more about these events, please email [email protected].
STANDARD MAILUS POSTAGE
PAIDAMARILLO, TX
PERMIT NO. 444
EnergyNet.com, Inc.7201 I-40 West, Suite 319 Amarillo, TX 79106 (806) 351-2953 www.energynet.com
Contact us today to discuss your A&D objectives!
Pictured left to right: Ethan House, Cody Felton, Michael Baker, Ryan Dobbs, Chris Atherton and Lindsay Ballard
EnergyNet’s Business Development Team
V.P. of Engineering & Govt Lease Sales John S. Munroe Office: (832) 403-3122 Cell: (713) 582-7755 [email protected]
PresidentChris Atherton Office: (713) 861-1866 Cell: (832) 654-6612 [email protected]
Houston / Eastern U.S Cody Felton Office: (713) 861-1866 Cell: (281) 221-3042 [email protected]
Permian Basin / East TX / North LA Michael Baker - VP Business Development Office: (972) 372-0232 Cell: (972) 898-5358 [email protected]
Mid-Continent / Texas Panhandle / AlaskaEthan D. House - VP Business Development Office: (405) 759-8437 Cell: (405) 255-5444 [email protected]
Western U.S.Ryan P. Dobbs Office: (303) 500-3063 Cell: (720) 459-2072 [email protected]
Permian Basin / East TX / North LA Lindsay D. Ballard Office: (432) 547-0424 Cell: (512) 269-9021 [email protected]
Call us at (877) 351-4488 or visit www.energynet.com