Objective & Strategy
The energy sector has entered a New Era. Persistently low oil prices have forced many industry participants to search for new ways to make money – or close their doors.
There is no doubt that the massive trend is to invest in the Permian Basin. Countries dependent on oil revenues must find new ways to balance their budgets and diversify. So where can we make money?
In the Permian Basin, evidence of increased drilling is everywhere. The Permian could soon become the largest oil basin in the world. We are confident it may become the largest producing area in the world as well. Even at current depressed prices, the Permian Basin appears to be ready to increase production for years and years. Lower costs combined with the tremendous source rocks in the Permian are extremely compelling.
Our strategy is to continue to identify businesses, partnerships and royalty companies with the best leverage and most exposure to the Permian Basin on a risk-adjusted basis.
We focus our portfolio on a limited number of high-quality energy-related securities. Our investment research combines fundamental requirements with macroeconomic energy data. Investments must be equipped to produce consistent growth while striving to outperform industry averages over the long-term. For MLPs, we seek midstream companies located primarily in the Permian Basin. We will also consider and invest in other strategically located areas supported by the same strict fundamentals. The firm also aims to capitalize on unique opportunities in Mineral Rights and Royalty investments.