As the energy capital of the world, Houston has become a hub for major investment banks. Top firms like Goldman Sachs, JPMorgan, Morgan Stanley all have major presence here to cover the lucrative oil and gas sector. So how can students break into investment banking in Houston? This article will provide a step-by-step guide.
Houston investment banks focus heavily on energy coverage
Houston is home to more than 5,000 energy related companies, including industry giants like ExxonMobil, Chevron, Schlumberger. Thus, investment banks in Houston dedicate most of their resources to the energy sector, especially oil & gas. Groups like natural resources, E&P (exploration & production), oilfield services are all active in Houston. Besides energy, investment banks also cover other Houston-based clients in consumer & retail, industrials, chemicals, transportation and infrastructure.
Utilize university energy clubs and major in STEM majors
The best way to prepare for Houston investment banking is to join energy clubs on campus. Most large state schools in Texas have dedicated oil & gas clubs that connect students to the industry. Case competitions hosted by energy firms are also great networking opportunities. Recruiters in Houston favor STEM majors like Petroleum Engineering, Chemical Engineering, Geology over pure finance majors because of the technical nature of the work.
Start networking with Houston bankers early on
Due to the niche focus on energy, Houston investment banking recruiting starts very early. Networking calls should start a year before applying for internships. Reach out to alumni in natural resources or oil & gas groups to learn more about the banks and express interest. Attend industry conferences in Houston to connect with bankers in person. Cold calls and office visits can also be effective if done professionally.
Ace the technical interviews
Interviews in Houston involve more technical questions on oil & gas valuations and industry knowledge. Brush up on DCF modeling of E&P companies, comps analysis for drillers and oilfield services firms. Understand key drivers like hydrocarbon basins, breakeven costs, upstream vs. downstream. Prepare stories on following the energy sector and competitive dynamics between firms.
Show passion for Houston and the energy space
Passion is key in Houston recruiting because past interns have dropped out due to cultural fit issues. Show genuine interest in living and working in Houston long-term. Highlight why you want to focus on energy banking specifically and how it aligns with your background and interests. Know details about the city like professional sports teams, restaurants, neighborhoods to show you have done research.
In summary, breaking into investment banking in Houston requires early preparation, domain expertise in energy, technical interview skills, and demonstrated passion for the city and industry. Utilize campus energy clubs, attend conferences, network vigorously, and ace the case studies to land offers from the Houston offices of top investment banks.