Experience across the asset life cycle combined with a differentiated approach gives Kayne a competitive advantage to investing in the complex and cyclical upstream oil and gas industry
Private Energy Investing
Why Invest in Private Energy at Kayne
Compelling market for investing in oil and gas today
Favorable Macroeconomic Fundamentals
- The supply and demand gap continues to tighten as OECD oil inventories have remained below the five-year average for most of 2018
- High geopolitical uncertainty may continue to limit supply
The U.S.’s Lower 48 is the Global Swing Producer
- The Lower 48 has the equipment availability and hydrocarbon source to react efficiently to dynamic global fundamentals
- Driven by resource plays, U.S. production averaged 9.6 MMbbl/d in April of 2015, decreased to 8.6 MMbbl/d in September of 2016 and has since increased to 11.4 MMbbl/d in August of 2018
Vast Opportunity Set
- Industry participants continue to sell existing early-stage assets rather than incubate new project areas
- Oil field technical innovation has grown exponentially since the downturn, creating new tools to develop assets
- Other factors beyond rock quality drove the concentration of investment
- Substantial high-quality resource exists beyond the “15 counties”
- Public operator focus and capital investment limited to more delineated plays
Why Invest in Private Energy at Kayne
Unmatched in-house engineering expertise, with eight in-house engineers across the private energy platform
Ability to transfer enginepering technology across opportunities
Tremendous stable of “repeat” management teams