Risk Management
Risk Management
Choosing the right partner is only part of the job — disciplined structuring and active oversight protect capital throughout the life of every investment.
Deal Structure
- 01
Direct working-interest ownership — not equity in an operating company — limits exposure to an operator's leverage and cost structure.
- 02
Tag rights that preserve optionality and protect against forced sales at sub-optimal times.
- 03
Election rights under joint operating agreements, evaluated well by well.
- 04
Strategic sell-downs of non-core interests to recover basis while preserving long-term upside.
- 05
Observation or board rights where appropriate, for visibility into development decisions.
Active Asset Management
- 01
Operator oversight — ongoing engagement with operating partners on development plans and pace.
- 02
Independent technical review — every well proposal tested against our own type curves and underwriting before we elect in.
- 03
Technical value-add — our engineering and geology perspective applied at underwriting and through the life of the asset.
- 04
Commodity-price risk management — a disciplined hedging approach to protect returns.
- 05
Institutional-quality reporting — clear, consistent reporting supported by third-party audits.