Experience across the asset life cycle combined with a differentiated approach gives Kayne a competitive advantage in investing in the complex and cyclical upstream oil and gas industry.
Marketable Energy Investing
Why Invest in Marketable Energy
Energy & infrastructure investments offer the opportunity to participate in the North American energy renaissance.
Midstream company earnings and fundamentals were strong in 2018 and that momentum has carried into 2019.
Most complex corporate structures unpopular with investors have been simplified.
The golden age of U.S. oil, gas, and NGL production and exports continues – the U.S. is now the world’s largest oil producer with ~12mb/d of production.
Strong capital spending combined with low equity issuance needs provide a strong tailwind for the sector – companies are looking to return excess free cash flow to shareholders.
Focus is now on project completion and distribution growth, with a number of companies already announcing substantial distribution increases.
Underlying trends continue to be favorable for infrastructure growth.
Significant distribution increases announced YTD.
Why Invest at Marketable Energy at Kayne Anderson
We are “go anywhere” energy & infrastructure investors
Cross Capital Structure Capabilities
- Invest across the midstream capital structure to find the best risk-adjusted investment returns.
- Experienced in managing highly-customized client SMAs with tactical equity/credit allocations.
Highly Experienced Midstream Investors
- Kayne has managed midstream funds for over 20 years.
- Senior investment team has been working together continuously for over 10 years.
- Two Alerian “Hall of Fame” award winners for achievement in the sector (K. McCarthy, D. LaBonte).
Private Transaction Leaders
- Kayne is an industry leader in providing creative private capital to the midstream sector.
- Private Investments in Public Equity (PIPEs), convertible preferreds, and other opportunistic transaction expertise.
- Look for “double-dip” opportunities – investing at a discount while creating a positive value catalyst.
Broadest Energy Investment Platform
- Not just a listed MLP/midstream manager.
- Large E&P private equity business provides deep insight into North American production activity.
- 30 additional investment professionals in our private equity group, including eight petroleum engineers.