As the energy capital of the world, Houston is home to many major investment banks that focus on the oil & gas sector. With over 5,000 energy companies headquartered in Houston, it offers abundant opportunities for investment banks to serve energy clients. This article will introduce the top investment banks in Houston, their key focus areas, major deals, office locations, and recruiting facts that job seekers need to know.
JPMorgan Chase is the leading full-service investment bank in Houston
JPMorgan Chase has the largest investment banking presence in Houston with over 800 employees. Its Houston office provides M&A, equity and debt financing services covering the upstream, midstream and oilfield services sectors. Notable energy deals led by JP Morgan in Houston include Occidental’s $55 billion acquisition of Anadarko and Kinder Morgan’s $21 billion merger with MLPs. The bank’s Houston office is located in the JPMorgan Chase Tower in downtown. For students, JPMorgan runs an internship program recruiting around 25 students each year.
Bank of America Merrill Lynch dominates high yield bond deals
Bank of America Merrill Lynch (BAML) has over 500 staff in Houston, making it another major player. BAML Houston focuses on providing capital markets and advisory solutions to oil & gas companies. It has led landmark energy bond deals including Chesapeake’s $1.5 billion notes offering and Sanchez Energy’s $1.15 billion high yield bond. Its Houston office is in the BofA Center in downtown. BAML Houston recruits around 15 analysts for full-time and internship positions.
Citigroup Houston excels in M&A for midstream clients
Citigroup has an 80-plus team in Houston, covering midstream, downstream, oilfield services and chemicals. Citi has advised on numerous midstream M&A transactions, such as advising Targa Resources on the $5.1 billion sale of its Permian assets. Citi also has oil & gas industry expertise in equity and debt capital markets. Its office is located in Greenway Plaza. Citi Houston hires about 5 analysts each year from target schools.
Evercore ISI dominates E&P sector with superior research
Evercore ISI is a leading independent investment bank in Houston with esteemed equity research expertise, especially around E&P companies. It has led transactions like Concho’s $9.5 billion acquisition of Reliance Energy. Evercore recruits 3-4 analysts in Houston annually. Its office is in the Galleria financial district. Candidates from energy-focused schools such as UT Austin are heavily recruited.
Houlihan Lokey and Tudor Pickering Holt stand out in energy restructuring
Boutique banks Houlihan Lokey and Tudor Pickering Holt have strong restructuring and M&A advisory practices focused on the energy sector. Houlihan Lokey has led restructuring deals for 65+ energy companies. TPH recently advised QEP on its merger with Diamondback Energy. These firms hire fewer than 10 analysts each year but offer great experience.
In summary, JP Morgan, Bank of America, Citi, Evercore ISI, Houlihan Lokey and TPH are the top investment banks in Houston covering the energy sector. Students interested in energy banking should target these firms.