Portfolio Manager’s Monthly Update – June 2018

June 11, 2018
Dear Partners,

It is one thing to write about why we select certain holdings for our fund. It is another thing altogether to see our convictions come true in as dramatic a fashion as you have seen this year. I am pleased to have performed well for our partners over the years, particularly during this last month. I will add that the Permian Basin’s dominance driving recent performance is far from over. Currently the Permian produces about 30% of the 10 million barrels of oil the US produces a year. We believe in future years that percentage will rise to almost 50%. The Fund is well positioned with Permian centric assets that we feel should continue to perform.

We do caution partners that there are reasons to expect consolidation of these gains during the next few months, at current levels or even slightly lower, because of take away capacity constraints and labor shortages in West Texas. Major companies are working as hard and as fast as they can to build pipelines and processing capacity to handle current production — and even higher production levels in the future. As these major new capacity additions near completion, we believe our portfolio assets will continue to appreciate.

Please feel free to contact us for further details or with any questions.

Sincerely,

Dana McGinnis
And the Mission Advisors Team