Join a Live Webinar: EnergyFunders and the Tax Benefits of Oil and Gas Investing
EnergyFunders, LLC and its affiliates (collectively, “EnergyFunders”) believe that environmentally and socially responsible investment builds long-term value in its projects and reduces their risk. In delivering that value, EnergyFunders must remain committed to workplace safety, environmental stewardship and social responsibility. EnergyFunders continually evaluates how it measures environmental, social and governance data and seeks ways to communicate this information to its limited partners.
As part of this commitment, EnergyFunders has refined its ESG Policy, which brings a range of its previously implemented ESG approaches and ESG-related policies and activities into an integrated document with 10 best practice targets and details its approach to responsible investing, incorporating social and environmental issues, health and safety considerations, and principles of good governance.
Responsible investment practices are business as usual, as they impact EnergyFunders’ financial performance, ability to execute its value creation strategy and reputation with land and mineral owners, communities, employees, contractors, regulators and investors. Responsible investment practices help EnergyFunders, LLC and its Affiliates attract and retain talent with the diversity of opinion and thought process required to generate powerful ideas and drive successful execution. Responsible investment practices make good business sense, and they have been part of EnergyFunders’ culture and embedded across its activities since inception. Within an industry known to have weak ESG practices and subpar public company financial returns, in particular its mid-market, EnergyFunders creates value from best-in-class ESG performance and advocates for higher ESG performance standards among its peers.
EnergyFunders was founded in 2013 to allow direct investments in low-cost unconventional & conventional oil and gas assets, responsibly. EnergyFunders has a direct non-operating interest and through our affiliate’s an owner-operator model, as it is sometimes called, meaning that it manages projects and owns assets with its own personnel. EnergyFunders does not oversee the work of separate management teams in funds that participate in a non-operating investment.
EnergyFunders Investment Strategy
EnergyFunders value creation framework revolves around syndicating from investors and participating in upstream oil and gas investments through our partners, affiliates, and other operators. The goal is to build and sustain solid returns putting the investors ahead of the traditional investments.
EnergyFunders’ strategy for creating investment value is to: (1) leverage its proprietary expertise and knowledge to identify low-cost, unconventional oil and gas assets, (2) combine small and irregular acreage into large, contiguous and more valuable acreage, and (3) drill the minimum number of wells required to demonstrate that reserves exist and can be produced at a low cost by capturing replication synergies across the acreage. EnergyFunders then exits to a company that will produce the hydrocarbons, and create reserves, at scale.
To maximize the effectiveness and efficiency of its investment strategy on the ground, EnergyFunders seeks to be the operator of choice for land and mineral owners, communities and regulators. To be a preferred operator, EnergyFunders must perpetuate its reputation as an ethical business partner that provides its expertise for a fair price, pays its vendors promptly, timely delivers on its commitments, complies with or exceeds all applicable regulations, endeavors to work in a sustainable manner. These characteristics depend upon consistent best-in-class ESG performance.
Unlike operators that create value mainly by producing and building reserves at scale, EnergyFunders’ business model requires drilling fewer wells. Correspondingly, EnergyFunders’ total greenhouse gas emissions, and its impacts on water, land and wildlife, are lower in absolute terms than those of operators that focus on producing and creating reserves. Although smaller in scale, EnergyFunders nonetheless must address a suite of ESG risks and opportunities similar to that of the industry at large.
EnergyFunders’ ESG strategy is to leverage best-in-class ESG performance to enhance its financial performance, while striving to build long-term value in its projects and reducing their risk.
EnergyFunders’ ESG strategy creates financial value by increasing a project’s NPV, replicability and scalability by:
EnergyFunders seeks to work with vendors and contractors who share its commitment to responsibility and who themselves desire to work with responsible business partners. EnergyFunders expects its vendors and contractors to possess high ethical standards; provide quality services; comply with all laws, rules and regulations; conduct operations in a sustainable manner, mindful of their impacts on climate and air, water, land, wildlife, biodiversity and local communities; demonstrate commitment to a quality health, safety and environmental program; treat their employees, sub-contractors, customers and other business partners fairly; and focus on a diverse and inclusive workplace.
When taken together, high performance on ESG factors differentiates EnergyFunders relative to competing operators, increases the firm’s access to quality deal flow and enhances its projects’ acquisition attractiveness to ESG-conscious investors. These benefits help EnergyFunders increase its financial performance by reducing project risk profiles, while concurrently increasing cash flows and the potential for replication and scale, in addition to increasing their intangible value and exit multiples.
At EnergyFund, ESG management is embedded in each step of the investment process, from pre- investment due diligence, to ongoing asset management and risk mitigation activities both pre- and post-investment, through exit. This means having a culture of responsible investing; minimizing impacts on climate and the environment; engaging positively and sharing benefits with local communities, employees, governments and other stakeholders; operating safely and in compliance with or exceeding applicable regulation; attracting, retaining and promoting talent with diversity of perspective and background; providing an inclusive environment free of harassment; complying with all state and federal policies and processes; and having a zero-tolerance policy on harassment and corruption. EnergyFunders is an innovative organization that continuously seeks to improve its processes by incorporating lessons learned and staying abreast of evolving best practices.
At EnergyFunders, LLC and its Affiliates, ESG management is embedded in each step of the investment process, starting with pre- investment due diligence, to ongoing asset management and risk mitigation activities post-investment, to exit. This means having a culture of responsible investing; minimizing impacts on climate and the environment; engaging positively and sharing benefits with local communities, employees, governments and other stakeholders; operating safely and in compliance with or exceeding regulation; attracting, retaining and promoting talent with diversity of perspective and background; providing an inclusive environment free of harassment; complying with all state and federal policies and processes; and having a zero-tolerance policy on harassment and corruption. EnergyFunders, LLC and its Affiliates is an innovative organization that continuously seeks to improve its processes by incorporating lessons learned and staying abreast of best practices.
As part of its commitment to ESG, EnergyFunders will also endeavor to meet the following “top ten” best practices:
EnergyFunders will provide an overview of its operations: production, operating wells, and wells drilled and produced.
Once EnergyFunders reaches a meaningful level of production, such as 5,000 Boe (barrels of oil equivalent) per day from its investments, the firm anticipates reporting and disclosing information on the following categories for its operated wells:
In addition, EnergyFunders will report on
The key data will be presented as follows:
GREENHOUSE GAS (GHG) METRICS
GHG emissions intensity rate
TRAINING AND DEVELOPMENT
Low Cost Organic Reserves Growth through the Drill Bit with Superior Risk Adjusted Returns
With our operational focus, through our affiliate, Paleo Resources, Inc. will participate in third-party generated high quality operated prospects. We will respond quickly, but thoughtfully, when presented an opportunity. EnergyFunders targets prospects that are: