oil & gas - m&a transactions summary
TRANSCRIPT
OIL & GASMergers & Acquisitions AnalysisSeptember 2015Alps Venture Partners
TRANSACTION MULTIPLES | HISTORICAL TRENDS | GEOGRAPHIC HEAT MAP
1pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Oil & GasValuation Summary
Total Deal Value ($mm) 786,950
Average Deal Value ($mm) 886
Average TEV/Revenue 4.2x
Average TEV/EBITDA 12.5x
Average Day Prior Premium (%) 19%
Average Week Prior Premium (%) 21%
Average Month Prior Premium (%) 22%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 121
$500 - $999.9 mm 50
$100 - $499.9 mm 227
Less than $100 mm 485
2pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Oil & Gas Trends
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
4.1x 4.9x3.9x 4.3x 4.2x 3.5x
15.5x17.2x
10.5x 10.2x 10.0x8.7x
Average TEV/RevenueAverage TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 4.1x 4.9x 3.9x 4.3x 4.2x 3.5x 4.3x
Average TEV/EBITDA 15.5x 17.2x 10.5x 10.2x 10.0x 8.7x 12.7x
3pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers – Oil & Gas Trends
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
20
40
60
80
100
120
20 26
19 21 22 13
12 10 10 8 7 3
40 47 45
38 40
17
96 100 90
68
91
40
> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 828 667 837 1,098 966 1,110 879
OIL & GAS DRILLING – HISTORICAL TREND ANALYSIS
4pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Oil & Gas Drilling
Valuation Summary
Total Deal Value ($mm) 20,175
Average Deal Value ($mm) 504
Average TEV/Revenue 3.0x
Average TEV/EBITDA 8.3x
Average Day Prior Premium (%) 18%
Average Week Prior Premium (%) 18%
Average Month Prior Premium (%) 18%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 4
$500 - $999.9 mm -
$100 - $499.9 mm 8
Less than $100 mm 28
5pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Oil & Gas Drilling
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
2.7x3.1x
1.6x2.6x 2.6x
5.6x
9.9x10.4x
5.0x
7.8x
5.6x 5.6xAverage TEV/RevenueAverage TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 2.7x 3.1x 1.6x 2.6x 2.6x 5.6x 2.5x
Average TEV/EBITDA 9.9x 10.4x 5.0x 7.8x 5.6x 5.6x 7.7x
6pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers - Oil & Gas Drilling
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
1
2
3
4
5
6
7
8
9
2 2
- - - - - - - - - -
1
3
1 1 1 1
8
5 5
3 3
4 > $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 508 1,365 55 49 46 44 405
7pageA L P S V E N T U RE P A R T N E R S
Geographic Heat Map - Oil & Gas Drilling
*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;
Asia Pacific – 13% Americas – 62% Europe/MENA/Africa – 25%
Region / Transactions Number Total Value Average Size
Asia Pacific 5 232 46 Europe/MENA/Africa 10 7,846 785 Americas 25 12,098 484
8pageA L P S V E N T U RE P A R T N E R S
Biggest Transactions - Oil & Gas Drilling
Target Deal Value ($mm)
Pride International Inc. 9,219
Frontier Drilling ASA 4,003
Transocean Norway Drilling AS 3,436
Scorpion Offshore Limited 1,074
Bronco Drilling Co. Inc. 343
Union Drilling, Inc. 244
Stoneham Drilling Trust 243
Compania Perforadora Mexico, S.A. DE C.V. 240
Caroil SAS 209
Northern Offshore Ltd 184
*Source – CapitalIQ, AlpsVP [email protected]
OIL & GAS REFINING & MARKETING – HISTORICAL TREND ANALYSIS
9pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Refining & Marketing
Valuation Summary
Total Deal Value ($mm) 79,886
Average Deal Value ($mm) 832
Average TEV/Revenue 1.1x
Average TEV/EBITDA 12.6x
Average Day Prior Premium (%) 3%
Average Week Prior Premium (%) 5%
Average Month Prior Premium (%) 9%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 12
$500 - $999.9 mm 5
$100 - $499.9 mm 25
Less than $100 mm 51
10
pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Refining & Marketing
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
5.0x
10.0x
15.0x
20.0x
25.0x
0.5x 0.6x 0.7x
3.1x1.8x
0.6x
20.9x
9.4x
6.8x
13.9x
18.2x
10.9xAverage TEV/RevenueAverage TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 0.5x 0.6x 0.7x 3.1x 1.8x 0.6x 1.3x
Average TEV/EBITDA 20.9x 9.4x 6.8x 13.9x 18.2x 10.9x 13.9x
pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers - Refining & Marketing
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
2
4
6
8
10
12
14
1 2
4
2 1
2
- 1 1
- 1
2
5 4
5 4 4
3
11
5
11
6 6
12
> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 211 890 1,518 456 277 1,157 670
11
pageA L P S V E N T U RE P A R T N E R S
Geographic Heat Map - Refining & Marketing
*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;
Asia Pacific – 40% Americas – 40% Europe/MENA/Africa – 20%
Region / Transactions Number Total Value Average Size
Asia Pacific 39 29,840 765 Europe/MENA/Africa 19 4,519 238 Americas 38 45,527 1,198
12
pageA L P S V E N T U RE P A R T N E R S
Biggest Transactions - Refining & Marketing
Target Deal Value ($mm)
Regency Energy Partners LP 18,823
GS Caltex Corp. 14,105
Sunoco, Inc. 8,712
PTT Aromatics and Refining Public Company Limited 5,670
EMG Marketing Godo Kaisha 4,966
Alliance Oil Company Ltd. 3,668
Frontier Oil Corp. 3,241
CVR Energy, Inc. (NYSE:CVI) 3,231
OMV Petrol Ofisi AS 2,333
S-Oil Corporation (KOSE:A010950) 1,950
*Source – CapitalIQ, AlpsVP [email protected]
13
OIL & GAS STORAGE & TRANSPORTATION – HISTORICAL TREND ANALYSIS
pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Storage & Transportation
Valuation Summary
Total Deal Value ($mm) 227,435
Average Deal Value ($mm) 1,602
Average TEV/Revenue 5.0x
Average TEV/EBITDA 14.2x
Average Day Prior Premium (%) 15%
Average Week Prior Premium (%) 17%
Average Month Prior Premium (%) 18%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 29
$500 - $999.9 mm 10
$100 - $499.9 mm 34
Less than $100 mm 69
14
pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Storage & Transportation
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3.1x
6.9x
3.9x 4.3x6.0x
4.7x
12.2x
24.2x
11.1x13.3x 13.2x 12.6x
Average TEV/RevenueAverage TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 3.1x 6.9x 3.9x 4.3x 6.0x 4.7x 4.8x
Average TEV/EBITDA 12.2x 24.2x 11.1x 13.3x 13.2x 12.6x 14.8x
15
pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers - Storage & Transportation
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
2
4
6
8
10
12
14
16
18
2
5 5 5
8
4
3
1 2 2 2
-
6 7
3
8
6
4
8
16 15
10
17
3
> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 930 459 2,466 589 3,105 1,599 1,510
16
pageA L P S V E N T U RE P A R T N E R S
Geographic Heat Map - Storage & Transportation
*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;
Asia Pacific – 26% Americas – 51% Europe/MENA/Africa – 23%
Region / Transactions Number Total Value Average Size
Asia Pacific 37 6,886 186 Europe/MENA/Africa 32 11,038 345 Americas 73 209,510 2,870
17
pageA L P S V E N T U RE P A R T N E R S
Biggest Transactions - Storage & Transportation
Target Deal Value ($mm)
Kinder Morgan Energy Partners, L.P. 62,938
El Paso LLC 35,658
Kinder Morgan Management, LLC 10,840
Enterprise ETE LLC 9,610
Southern Union Co. 9,377
El Paso Pipeline Partners, L.P. 8,622
Southern Union Co. 8,581
Atlas Energy, L.P 8,258
PVR Partners, L.P. 5,527
Oiltanking Partners, L.P. 5,156
*Source – CapitalIQ, AlpsVP [email protected]
18
OIL & GAS EXPLORATION & PRODUCTION – HISTORICAL TREND ANALYSIS
pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Exploration & Production
Valuation Summary
Total Deal Value ($mm) 277,268
Average Deal Value ($mm) 843
Average TEV/Revenue 6.6x
Average TEV/EBITDA 13.9x
Average Day Prior Premium (%) 26%
Average Week Prior Premium (%) 28%
Average Month Prior Premium (%) 29%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 50
$500 - $999.9 mm 20
$100 - $499.9 mm 83
Less than $100 mm 175
19
pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Exploration & Production
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
3.1x
6.9x
3.9x 4.3x6.0x
4.7x
12.2x
24.2x
11.1x13.3x 13.2x 12.6x
Average TEV/RevenueAverage TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 7.3x 7.5x 6.2x 6.3x 5.4x 6.2x 7.3x
Average TEV/EBITDA 20.1x 21.1x 9.3x 10.6x 9.1x 4.7x 20.1x
20
pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers - Exploration & Production
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
5
10
15
20
25
30
35
40
45
50
10 9 5
9 12
5 4 3 4
6 2 1
13 16
20
13 17
4
38
43
26 23
34
11
> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 1,081 726 467 1,184 595 1,411 811
21
pageA L P S V E N T U RE P A R T N E R S
Geographic Heat Map - Exploration & Production
*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;
Asia Pacific – 16% Americas – 71% Europe/MENA/Africa – 13%
Region / Transactions Number Total Value Average Size
Asia Pacific 51 22,375 439 Europe/MENA/Africa 42 23,737 565 Americas 236 231,156 979
22
pageA L P S V E N T U RE P A R T N E R S
Biggest Transactions - Exploration & Production
Target Deal Value ($mm)
XTO Energy Inc. 40,764
Nexen Energy ULC 19,222
Petrohawk Energy Corporation 15,754
Talisman Energy Inc. 13,518
Freeport-McMoRan Oil & Gas Inc. 11,404
EP Energy LLC 8,187
Athlon Energy Inc. 6,980
DEA Deutsche Erdoel AG 6,268
Whiting Canadian Holding Company ULC 6,129
Cairn India Limited (NSEI:CAIRN) 6,023
*Source – CapitalIQ, AlpsVP [email protected]
23
OIL & GAS EQIPMENTS & SERVICES – HISTORICAL TREND ANALYSIS
pageA L P S V E N T U RE P A R T N E R S
Merger & Acquisition Summary – Equipment & Services
Valuation Summary
Total Deal Value ($mm) 87,641
Average Deal Value ($mm) 358
Average TEV/Revenue 2.4x
Average TEV/EBITDA 11.3x
Average Day Prior Premium (%) 20%
Average Week Prior Premium (%) 21%
Average Month Prior Premium (%) 23%
*Source – CapitalIQ, AlpsVP AnalysisDate Range: Jain 1, 2010 – August 15, 2015
Transaction Ranges
Greater than $1 billion 18
$500 - $999.9 mm 11
$100 - $499.9 mm 65
Less than $100 mm 150
24
pageA L P S V E N T U RE P A R T N E R S
Transaction Multiples – Equipment & Services
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 20150.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
2.3x 2.2x 2.5x 2.9x2.1x 2.4x
10.6x
16.4x
12.2x
8.1x 7.5x9.1x Average TEV/Revenue
Average TEV/EBITDA
Mul
tiple
s
Historical Multiples 2010 2011 2012 2013 2014 2015 5 Year
Average TEV/Revenue 2.3x 2.2x 2.5x 2.9x 2.1x 2.4x 2.4x
Average TEV/EBITDA 10.6x 16.4x 12.2x 8.1x 7.5x 9.1x 10.9x
25
pageA L P S V E N T U RE P A R T N E R S
Transaction Numbers - Equipment & Services
*Source – CapitalIQ, AlpsVP Analysis;
2010 2011 2012 2013 2014 2015 -
5
10
15
20
25
30
35
4 5 5 2
- 2 3 4
2 -
2 -
15 15
10 9 11
5
28 28
33
26 27
8
> $1 billion$500 - $999.9mm$100 - $499.9mmLess than $100mm
Num
ber o
f Tra
nsac
tions
(in $ Million) 2010 2011 2012 2013 2014 2015 5 Year
Average Deal Value 568 364 313 202 134 770 316
26
pageA L P S V E N T U RE P A R T N E R S
Geographic Heat Map - Equipment & Services
*Source – CapitalIQ, AlpsVP Analysis; Number of transactions in Major Regions;
Asia Pacific – 23% Americas – 46% Europe/MENA/Africa – 31%
Region / Transactions Number Total Value Average Size
Asia Pacific 56 9,176 164 Europe/MENA/Africa 77 16,753 218 Americas 112 61,712 551
27
pageA L P S V E N T U RE P A R T N E R S
Biggest Transactions - Equipment & Services
Target Deal Value ($mm)
Smith International, Inc. 14,647
Dresser-Rand Group Inc. 7,628
BJ Services Company LLC 5,761
Lufkin Industries Inc. 3,387
Complete Production Services, Inc. 3,310
Dresser, Inc. 3,200
Subsea 7 Inc. 3,085
Wood Group ESP, Inc. and Wood Group Pressure Control, LP and Wood Group Logging Services, Inc. 2,850
Nabors Red Lion Limited 2,407
SapuraKencana Petroleum Berhad (KLSE:SKPETRO) 2,313
*Source – CapitalIQ, AlpsVP [email protected]
28
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