Piper Sandler Companies · NYSE:PIPR
Piper Sandler Companies — Investor Presentation (May 2017)
17 slides from Piper Sandler Companies's investor presentation, May 17, 2017
Slide 1: Investing in Oilfield Services and Equipment Discussion
Investing in Oilfield Services and Equipment Discussion May 17, 2017
Slide 2: U.S. Commodity Outlook Shows Continued Recovery
U.S. Commodity Outlook Shows Continued Recovery Historical and Projected WTI Price and U.S. Land Rig Count (Rigs) ($/bbl) 2,000 1,842 $120.00 1,796 1,856 Historical U.S. Land Rig Count¹ 1,800 1,724 Projected U.S. Land Rig Count² Historical WTI Price³ $100.00 1,600 Consensus WTI Projection³ 1,354 1,4
Slide 3: OFS IPO Versus M&A Market
OFS IPO Versus M&A Market U.S. OFS IPO and M&A Activity (Number of U.S. OFS C-Corp IPOs) (Number of U.S. OFS M&A Transactions) 30 300 Number of U.S. OFS C-Corp IPOs¹ Number of U.S. OFS M&A Transactions² 20 200 15 10 100 3 2 1 0 0 0 2013 2014 2015 2016 YTD 2017 Annualized ¹ Source: Simmons, Capital I
Slide 4: OFS M&A Activity Has Been More Volatile Than Overall U.S. Since 2009
OFS M&A Activity Has Been More Volatile Than Overall U.S. Since 2009 U.S. OFS and Overall M&A Activity Since 2009 (Indexed to 100 as of 2009) 140 OFS M&A Activity¹ 120 U.S. M&A Activity² 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 ¹ Source: Simmons internal database. Includes deals whe
Slide 5: Abundance of Dry Powder Remains To Invest In OFS Space
Abundance of Dry Powder Remains To Invest In OFS Space NAM Dry Powder¹ Energy Private Capital Raises and Dry Powder¹ (Dollars in billions) (Dollars in billions) $1,000 $200 NAM Dry Powder U.S.-Focused Energy Private Capital Raises $820 Energy-Focused Dry Powder $800 $160 $705 $145 $640 $125 $580 $60
Slide 6: Eight OFS IPOs Have Priced Since Downturn
Eight OFS IPOs Have Priced Since Downturn¹ Pre-IPO Net Pre-IPO Net Pre-IPO Net Pre-IPO Net Pre-IPO Net Pre-IPO Net Pre-IPO Net Pre-IPO Net Debt: Debt²: Debt: Debt: Debt: Debt: Debt: Debt: $81.4 million $94.2 million $235.3 million $45.8 million $11.0 million $70.9 million $(0.4) million $2,556.0 mil
Slide 7: Review of Recent M&A Activity
Review of Recent M&A Activity has announced the has announced a Joint has announced the has agreed to acquire has agreed to acquire accquisition of Venture with accquisition of has announced the has announced the accquisition of has acquired Three Jackup Drilling accquisition of Rigs from Pending Pe
Slide 8: OFS High Yield Activity Is Making A Comeback
OFS High Yield Activity Is Making A Comeback Oil & Gas High Yield vs. Loan Volume Since January 2016 $10,000 Loan Volume ($ millions) HY Volume ($ millions) $8,000 $6,000 $4,000 $2,000 $0 Source: LCD and Bloomberg. SIMMONS & COMPANY INTERNATIONAL | ENERGY SPECIALISTS OF PIPER JAFFRAY 8
Slide 9: Energy High Yield Markets Have Returned To Parity With Overall U.S.
Energy High Yield Markets Have Returned To Parity With Overall U.S. Energy High Yield Index – Yield To Worst Since January 2016 25.0% S&P U.S. Dollar Global High Yield Corporate Bond Energy Index S&P U.S. High Yield Corporate Bond Energy Index 20.0% 16.1% 15.4% 15.0% 10.0% 5.0% 0.0% Source: LCD and
Slide 10: Pace Of Oilfield Services Bankruptcies Has Slowed In Recent Months
Pace Of Oilfield Services Bankruptcies Has Slowed In Recent Months 2015-2017 Cumulative North American Oilfield Services Bankruptcy Filings¹ 140 124 127 117 119 120 108 109 111 99 100 93 85 79 80 70 61 60 53 41 44 39 40 31 34 26 16 19 20 15 6 7 9 1 4 0 SIMMONS & COMPANY INTERNATIONAL | ENERGY SPECIA
Slide 11: Total OFS Bankruptcy Debt Exceeds $27 Billion
Total OFS Bankruptcy Debt Exceeds $27 Billion 2015-2017 Cumulative North American Oilfield Services Bankruptcy Debt¹ (Dollars in millions) $30,000 Secured Debt $27,363 Unsecured Debt $25,848 $25,000 Total Debt $20,000 $18,797 $17,323 $16,423 $14,506 $15,000 $12,109 $11,110 $10,040 $9,413 $9,425 $10,
Slide 12: Previously Bankrupt OFS Companies Are Relisting
Previously Bankrupt OFS Companies Are Relisting Post Chapter 11 Post Chapter 11 Post Chapter 11 Chapter 11 Chapter 11 1/6 – Emerged from 12/23 – Emerged from 12/15 – Emerged from 1/22 – Commenced 3/11 – Entered into bankruptcy bankruptcy bankruptcy voluntary reorganization restructuring su
Slide 13: E&P Capital Spending Budgets Are Expanding
E&P Capital Spending Budgets Are Expanding Historical and Projected U.S. Drilling and Completion Spending¹ $160.0 Historical Drilling and Completion Spend $148.8 $144.4 Projected Drilling and Completion Spend $140.0 $130.9 $120.0 $112.0 $108.6 $99.6 $100.0 $90.1 $85.6 $77.2 $77.5 $80.0 $60.0 $43.3 $
Slide 14: WTI Breakeven By Oil Play
WTI Breakeven By Oil Play¹ (Dollar amounts in millions) $100 Breakeven (Assumes 30% IRR) $90 Current WTI Price ($48.85)² $80 Permian Basin Plays $70 $60 $50 $40 $30 $20 $10 $0 SIMMONS & COMPANY INTERNATIONAL | ENERGY SPECIALISTS OF PIPER JAFFRAY 14 ¹ Source: Simmons Research. ² Source: Bloomberg. As
Slide 15: Permian E&P Has Outperformed Non-Permian E&P During Downturn
Permian E&P Has Outperformed Non-Permian E&P During Downturn Indexed Performance Since June 1, 2014¹ (Indexed to 100 Since June 1, 2014) 150 Permian E&P Index² E&P Index (Ex. Permian)³ 100 (8)% 68% 50 Outperformance (76)% 0 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Slide 16: Permian Basin Has Dominated E&P Capital Raising
Permian Basin Has Dominated E&P Capital Raising Public Equity Capital Raised By Area¹ (Dollar amounts in millions) $7,000 Permian 100% All Other² 90% $6,000 % Permian 80% $5,000 70% 60% $4,000 50% $3,000 40% $2,000 30% 20% $1,000 10% $0 0% ¹ Source: Capital IQ. As of May 15, 2017. ² Includes DJ Basi
Slide 17: Locations
For information on other Piper Jaffray locations, Locations: visit piperjaffray.com Houston | Aberdeen | London Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffr
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