A Capital Opportunity

A Capital Opportunity A Global Market for Oil & Gas Companies CAPP ScotiaBank Investment Symposium – April 2014 1 Disclaimer This document is for in...
Author: Lindsey Edwards
14 downloads 0 Views 522KB Size
A Capital Opportunity A Global Market for Oil & Gas Companies CAPP ScotiaBank Investment Symposium – April 2014

1

Disclaimer This document is for information purposes only. While the information herein is collected and compiled with care, neither TMX Group Limited nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, legal, accounting, tax, investment, business, financial or other purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Limited and/or any of its affiliates as a result of any errors or omissions herein or any use or reliance upon this information.

2

© 2014 TSX Inc. All rights reserved. Do not sell or modify without the prior written consent of TSX Inc.

Canada and TSX: Strong Fundamentals Economically stable •

• • • • •

Canada is the fifth largest equity market by float capitalization in the MSCI World Index World’s soundest banking system Lowest debt-to-GDP among G7 Strong equity culture ~$2.4 Trillion in market cap $270 billion in equity capital raised in last 5 years

Energy and resource rich • •

3r d largest oil reserves in the world #1 in resource listings

3

Canadian Markets…Global Leaders

1st

1st

1st

In Listed Oil & Gas Companies

In Listed Energy Services Companies

In Oil & Gas Analysts

1st

2nd

3rd

In Listed Renewable Energy and Clean Technology Companies

In New Listings

In New International Listings

2nd

7th

7th

In Equity Capital Raised

In Market Capitalization and Value Traded

In Number of Listed Companies

4

Source: World Federation of Exchanges, 2013, Capital IQ, TSX/TS XV Market Intelligence Group

The World Lists on TSX and TSXV TSX and TSXV International Listings by Country/Region

Total International Listings as at December 31 2013= 314 TSX = 164 Listings | QMV=$151 B TSXV = 150 Listings | QMV= $2.8 B

5

The World Trades on TSX and TSXV

~40% of daily trading originates from international brokers

th 7 in the world in value traded

6

Service at All Stages of Growth A Unique Market Structure with Strong Feeder System

Serving all Market Caps

% of TSX Issuers % of TSXV Issuers

94%

583 35%

535 Issuers

36%

29% 2,015 Issuers

442 Issuers

$250 Million From January 1, 2000 – December 31, 2013

7

Market Capitalization, December 31, 2013

Access to Capital Toronto Stock Exchange and TSX Venture Exchange Total Financings (C$ Billions) 1999 – 2013 Average Financing Size: TSX: $67M TSXV: $2M

64.9 58.8

52.2 49.7 46.2 19.2 19.2

1999*

8

25.5

22.0

23.1

20.9

2.4

1.1

2000

2001

27.3 25.8 1.4

2002

31.5

32.5

29.1

28.4

2.4

4.1

6.1

2003

2004

2005

TSX Venture Exchange commenced operations on November 29, 1999

60.0

56.5 54.0

47.6

41.8

40.8

44.1

51.1

50.6

41.0

39.9

35.3 7.9

2006

11.1

2007

5.5

2008

9.8 5.0

2009

2010

10.1

2011

43.6

6.0

2012

3.8

2013

Oil & Gas by the Numbers

369

$375B

Issuers 110 TSX + 259 TSXV

Market Capitalization $364B TSX + $11B TSXV

$5.2B

15

Equity Capital Raised $3.9B TSX + $1.3B TSXV

New Listings 9 TSX + 6 TSXV

246

Number of Financings 72 TSX + 174 TSXV 9

Leading Growth Markets for Oil & Gas

1

#

in listed oil & gas companies globally

Number of Listed Oil & Gas Issuers 369

167

147

136 49

32%

of the world’s public oil & gas companies

10

Source: Capital IQ, as at December 31, 2013

TSX/TSXV NYSE/ NYSE MKT

ASX

LSE/AIM NASDAQ

17

14

HKEx

Oslo Bors

Leader in Energy Services

1

Number of Listed Energy Services Issuers

#

80

in listed energy services companies globally

59 46

21

21%

19

13

TSX/TSXV NYSE/ Oslo Bors LSE/AIM NASDAQ NYSE MKT

6

HKEx

ASX

of the world’s public energy services companies

11

Source: Capital IQ, as at December 31, 2013

Access to Capital

$5.2B Raised by oil and gas companies in 2013

Oil & Gas Equity Capital Raised on Toronto Stock Exchange and TSX Venture Exchange (C$ Billions) Secondary Offerings

Private Placements

$11.7B

IPOs

$11.3B $10.4B $10.5B

$10.1B $9.2B

$9.0B $8.2B

246

$5.2B $4.1B

Financings in 2013 2004

12

2005

2006

2007

2008

2009

2010

2011

2012

2013

Service at All Stages of Growth

200+

Oil and Gas Analyst Coverage

Oil & Gas Equity Analysts Cover the Sector

Companies of all sizes receive analyst coverage

13

Source: Capital IQ

Who is Attracting Capital? §

They have a good story

§

Strong balance sheet

§

Room for growth

§

Strong management team § Are they known in the energy community? § Are they known in the investment community: bankers, analysts, investors? § Have they done it before? § What is their track record?

14

14

Where Is the Capital Going? UK/Europe, Middle East and Russia: $595M

Canada: $2.7B USA: $980M

Africa: $789M

Latin America: $75M

15

Equity capital raised on TSX and TSXV for oil & gas companies by location of project Source: TSX/TSXV Market Intelligence Group, 2014

Clean Tech Sector Growth and Performance Growth of Sector:

Performance:

Year-End Market Capitalization (C$B)

S&P/TSX Renewable Energy and Clean Technology Index

$21.8 $18.0

$16.8

$18.1

2010

2011

2012

$12.9

2009

16

2013

2013 Oil & Gas Junior Market Overview §

Depressed Capital Market Activity

§

Increased Private Equity financing

§

Junior companies traded up approximately 17% in the last half of 2013

§

A lot of consolidation, only 50% of juniors remain from 2007

§

Equity financings were down 30% from 2012

§

5 companies raised 60% of equity capital raised

§

75% of junior proceeds were raised in the second half of the year

§

More IPO’s in the second half of the year

§

Companies are recapitalizing

§

Decreased M&A activity (67%) and higher cost of capital

§

25% decrease in flowing oil metrics

§

A lot of assets on the market

Source: Paradigm Capital

17

17

General Trends

18

§

Increased interest in yield/dividends

§

Private Equity filled the gap that the sluggish capital markets created

§

Thirst for international projects

§

Increased activity and capital raising for African based projects

§

Capital raising and M&A activity has increased dramatically in 2014

§

Funds are flowing back into the Oil & Gas sector

§

Preference for oil-weighted E&P issuers

§

More room for midstream and oilfield services

§

Private placements and bought deals

18

19