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