Register for Client Education Seminar. Learn More »

The US Energy Sector

by AOG Wealth Management

All of you familiar with our typical portfolio model know how focused we are on the burgeoning US energy sector.  While we consider both fossil fuels and renewable sources of energy, over the last ten years we have focused on the most profitable sectors.  This has led us to concentrate on the production of oil and natural gas, and their upstream and downstream components.

This week I am in Dallas at a conference focusing on energy investing.   I am joined by 50 Broker Due Diligence Officers, Registered Investment Advisors, and Family Office Representatives.   We are reviewing presentations and meeting the principals of 20 Oil and Gas Companies that cover the entire breadth of the energy sector, including equity and debt interests, royalties, working interests, engineering, production, supply, refining, and distribution networks.

Our clients are familiar with all of the structures that are being presented. Investments include equity in General/Limited Partnerships for drilling, with programs such as Mewbourne and APX as two examples.  Private debt and equity is offered by Business Development Companies such as the Franklin Square Energy Fund.  Liquid investments are provided through Closed End Mutual Funds. Master Limited Partnerships would include investments such as the First Trust MLP UIT.

I am pictured with Aubrey McClendon, the CEO of American Energy Partners.  Aubrey was the Co-Founder and longtime CEO of Chesapeake Energy.  Although he lost his fight with the Chesapeake board last year, and was forced to resign, no one denies the unparalleled innovation and success he directed in his twenty year tenure there.  Freshly capitalized by Private Equity interests, and with stronger corporate governance, he brings an interesting perspective to this sector.

Category: Blog