American Oil and Gas Reporter - April 2021 - 41

pages 38-42_Layout 1 4/8/2021 2:28 PM Page 41

SpecialReport: Capital Crews
trend for some time, the Energy Council notes. " In 2020, the
onset of yet another lower-price environment, muted demand
and the continuing energy transition disrupted the traditional
hydrocarbons investment model even further. "
Reflecting on the results of the survey, Energy Council
details that " many private equity players now find themselves
with stranded assets and IPOs are off the cards for the foreseeable
months ahead. Even long-standing traditional investors who
remain bullish in their approach to oil and gas production are
diversifying their portfolios to explore potentially more sustainable
Shifting To Offense
investments that can be offered in and around " green gas;
Other capital providers also are practicing prudence. " Our
carbon capture, use and storage; and biofuels, " it says.
firm was anticipating a pullback in the energy space and prices,
And yet the upstream sector is adapting. Operating companies
but the pandemic accelerated depressed commodity prices and
are finding ways to recapitalize, diversify and reduce risk.
bankruptcies, as well as merger and acquisition activity, " reports
Notably, while limited partners and pension funds are shifting
Frost Cochran, managing director at Post Oak Capital. " We do
their priorities, " the current lower-price environment presents
not utilize much leverage in our portfolio, but we used late
opportunity and many are poised to swoop in and acquire
March, April and the first half of May to play defense and make
desirable assets, " according to the Energy Council.
sure our portfolio was set
" The current climate may mean
for the duration. We then
a period of creative deal structurshifted to offense and have
ing, joint ventures and reducedbeen very active in looking
risk investment opportunities as
" Our portfolio was set for the
for opportunities. "
the tug of war between renewable
duration. We then shifted to offense
Prices have recovered
and nonrenewable sources of enand have been very active in looking
" meaningfully, " he adds,
for opportunities. "
ergy continues, " the report sug " and we believe that we
gests. The Energy Council stresses
Frost Cochran, Managing Director
will continue to see conthat " in a world with a rapidly
Post Oak Capital
solidation, which will progrowing population, the energy
vide opportunities for our
mix will not change overnight,
latest fund. We believe Post Oak is in a good position with the
even in the face of hostility. "
amount of dry powder we have to be acquisitive, but also have
One strong positive sign is that the industry is bullish on oil
an existing portfolio that is positioned to generate distributable
prices, even considering the fact that the survey was conducted
cash flows for our investor base over the long term. "
at the start of 2021. " Since then, positive news around COVIDCochran says several management teams are looking for
19 vaccines, the gradual reduction in U.S. shale production,
capital. " Long term, if the team is set to develop an asset and
and the move by OPEC+ to restrain output into mid-2021, and
manage it, than then there should be access to capital, " he coman extra gift from Saudi Arabia to remove another 1 million
ments. " The amount of dry powder in the private equity energy
barrels of oil a day from the market all provide impetus for
sector has declined, and general partners may not be able to
West Texas Intermediate (prices), " the Energy Council states.
raise as much as they have historically, given returns in energy
Many of the survey respondents shared their belief that
as well as ESG concerns. It will be important to have a complete
this trend would continue thanks to demand resurgence. The
team that covers all disciplines to access capital as availability
International Energy Agency shows total demand is expected
is declining. "
to increase and slightly exceed 2019 levels by as soon as
He does not anticipate a quick return to eager lending.
2022. On the other side of the ledger, the changing political
" Banks are not lending as much capital as they have historically
climate, including the results of the U.S. elections last fall
so there is a focus on PDP assets, " Cochran describes. " There
and OPEC+ seemingly resuming its traditional role of
will have to be years where the industry shows capital discipline
managing world prices, point to the likelihood of tighter
before banks become more aggressive on lending. "
supply, IEA suggests.
energy value chain. "
Tailwater reports it has started the year strong, acquiring a
number of premier and strategically located assets in the first
quarter. The firm forges forward with optimism, but not
without caution. " We have been successful in securing assets
in 2021 because of our team's work going back to early
2020, " Cecere reflects. " Those valuations would not have won
the day a year ago, but we were patient and able to see them
through to completion. "

Adapting To Change

Unique Opportunities

The upstream sector has long faced increasing headwinds,
and capital flows into the sector have been on a downward

" No one, regardless of their tenure or life experience, had a
good waypoint for 2020, " offers Bryan Benoit, national managing
APRIL 2021 41



American Oil and Gas Reporter - April 2021

Table of Contents for the Digital Edition of American Oil and Gas Reporter - April 2021

Contents
American Oil and Gas Reporter - April 2021 - Intro
American Oil and Gas Reporter - April 2021 - Cover1
American Oil and Gas Reporter - April 2021 - Cover2
American Oil and Gas Reporter - April 2021 - Contents
American Oil and Gas Reporter - April 2021 - 4
American Oil and Gas Reporter - April 2021 - 5
American Oil and Gas Reporter - April 2021 - 6
American Oil and Gas Reporter - April 2021 - 7
American Oil and Gas Reporter - April 2021 - 8
American Oil and Gas Reporter - April 2021 - 9
American Oil and Gas Reporter - April 2021 - 10
American Oil and Gas Reporter - April 2021 - 11
American Oil and Gas Reporter - April 2021 - 12
American Oil and Gas Reporter - April 2021 - 13
American Oil and Gas Reporter - April 2021 - 14
American Oil and Gas Reporter - April 2021 - 15
American Oil and Gas Reporter - April 2021 - 16
American Oil and Gas Reporter - April 2021 - 17
American Oil and Gas Reporter - April 2021 - 18
American Oil and Gas Reporter - April 2021 - 19
American Oil and Gas Reporter - April 2021 - 20
American Oil and Gas Reporter - April 2021 - 21
American Oil and Gas Reporter - April 2021 - 22
American Oil and Gas Reporter - April 2021 - 23
American Oil and Gas Reporter - April 2021 - 24
American Oil and Gas Reporter - April 2021 - 25
American Oil and Gas Reporter - April 2021 - 26
American Oil and Gas Reporter - April 2021 - 27
American Oil and Gas Reporter - April 2021 - 28
American Oil and Gas Reporter - April 2021 - 29
American Oil and Gas Reporter - April 2021 - 30
American Oil and Gas Reporter - April 2021 - 31
American Oil and Gas Reporter - April 2021 - 32
American Oil and Gas Reporter - April 2021 - 33
American Oil and Gas Reporter - April 2021 - 34
American Oil and Gas Reporter - April 2021 - 35
American Oil and Gas Reporter - April 2021 - 36
American Oil and Gas Reporter - April 2021 - 37
American Oil and Gas Reporter - April 2021 - 38
American Oil and Gas Reporter - April 2021 - 39
American Oil and Gas Reporter - April 2021 - 40
American Oil and Gas Reporter - April 2021 - 41
American Oil and Gas Reporter - April 2021 - 42
American Oil and Gas Reporter - April 2021 - 43
American Oil and Gas Reporter - April 2021 - 44
American Oil and Gas Reporter - April 2021 - 45
American Oil and Gas Reporter - April 2021 - 46
American Oil and Gas Reporter - April 2021 - 47
American Oil and Gas Reporter - April 2021 - 48
American Oil and Gas Reporter - April 2021 - 49
American Oil and Gas Reporter - April 2021 - 50
American Oil and Gas Reporter - April 2021 - 51
American Oil and Gas Reporter - April 2021 - 52
American Oil and Gas Reporter - April 2021 - 53
American Oil and Gas Reporter - April 2021 - 54
American Oil and Gas Reporter - April 2021 - 55
American Oil and Gas Reporter - April 2021 - 56
American Oil and Gas Reporter - April 2021 - 57
American Oil and Gas Reporter - April 2021 - 58
American Oil and Gas Reporter - April 2021 - 59
American Oil and Gas Reporter - April 2021 - 60
American Oil and Gas Reporter - April 2021 - 61
American Oil and Gas Reporter - April 2021 - 62
American Oil and Gas Reporter - April 2021 - 63
American Oil and Gas Reporter - April 2021 - 64
American Oil and Gas Reporter - April 2021 - 65
American Oil and Gas Reporter - April 2021 - 66
American Oil and Gas Reporter - April 2021 - 67
American Oil and Gas Reporter - April 2021 - 68
American Oil and Gas Reporter - April 2021 - 69
American Oil and Gas Reporter - April 2021 - 70
American Oil and Gas Reporter - April 2021 - 71
American Oil and Gas Reporter - April 2021 - 72
American Oil and Gas Reporter - April 2021 - 73
American Oil and Gas Reporter - April 2021 - 74
American Oil and Gas Reporter - April 2021 - 75
American Oil and Gas Reporter - April 2021 - 76
American Oil and Gas Reporter - April 2021 - 77
American Oil and Gas Reporter - April 2021 - 78
American Oil and Gas Reporter - April 2021 - 79
American Oil and Gas Reporter - April 2021 - 80
American Oil and Gas Reporter - April 2021 - 81
American Oil and Gas Reporter - April 2021 - 82
American Oil and Gas Reporter - April 2021 - Cover3
American Oil and Gas Reporter - April 2021 - Cover4
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com