Energy Investment Thesis

“The transition will… leave the higher carbon parts of the value chain financially stranded and under-invested, such as oil production (particularly oil sands and older fields) and refining, leading to potentially higher oil prices and refining margins in the coming decade and to a bigger role for private capital in those areas.”

Goldman Sachs, “Re-Imagining Big Oil”, 2018

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Decarbonization – as major oil companies begin to “decarbonize” and transition to natural gas, renewables, and utility operations (and focus on select “shale regions”), a significant industry restructuring is underway. Public markets will follow this shift

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Conventional resources – a significant number of high quality traditional oil and gas deposits will become available for sale to private capital

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High cashflow assests – increasing opportunities to purchase low risk cash-rich assets at attractive rates of return

Our target – we focus on mid-market (<$150m) upstream and midstream US onshore assets in “overlooked” regions where we can gain and exploit a competitive advantage. Preference is set for assets with decarbonization potential

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Our strategy – a simple and proven approach of reducing costs and marginally increasing production to generate high-teen, low-20s returns. “New play” geology sometimes provides additional serendipity upside