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Better.  July saw a bounce in risk assets with the S&P500 jumping +9.1% and energy generally outperforming. There were no particular fundamental epiphanies in the crude oil markets during July.  The commodity traded in line with other risk assets, generally rising on up days for the stock market and falling on down days…

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As we have discussed for the past few quarters, rising rates, base effects, and far more persistent inflationary headwinds – the hangover from super stimulated monetary conditions post-COVID – are pressuring global economic activity and with it, asset prices. Unfortunately, we don’t think that we are out of the woods yet, as central banks remain behind the curve with both structural (higher long-term commodity prices, the impact of regionalizing supply chains) and cyclical (labor availability, inventory shortages) factors weighing down the outlook for growth and increasing the cost of capital.

Despite the associated market volatility, several dynamics are playing out which, perhaps counterintuitively, are increasing our conviction that the next five to ten years should be extremely prospective for a select group of real assets.

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HOUSTON, July 13, 2022 /PRNewswire/ — Pickering Energy Partners (PEP), a Houston-based energy financial services and investment firm, is pleased to announce a strategic partnership with a large institutional investor to acquire and develop Permian Basin oil and gas interests alongside premier operators (PEP Development). Over the next two years, PEP Development will focus on deploying at least $300 million of equity capital alongside highly experienced public and private operating companies in the Permian Basin.

“We are in an environment where oil and gas is strategic again, where energy security and trustworthy barrels are rising as a priority for companies and consumers. We are excited to invest across the Permian and play our part in bringing U.S. production to the marketplace,” stated Dan Pickering, Chief Investment Officer.

“As with prior PEP investment partnerships, PEP Development will lean on our team’s history of working with quality institutional investors and established, experienced Permian operators who share the goal of successfully acquiring and stewarding energy and natural resources,” added Walker Moody, President.

“Our drilling partnerships may include authorization for expense (AFE) acquisitions, farm-in or drill-to-earn opportunities, drill-ready acreage, or other structured opportunities. We have a lot of flexibility in how we form partnerships. Fundamentally, we deliver a capital solution in a challenging capital markets environment and are excited to build great businesses with great operators,” added Lex Hochner, Managing Director.

PEP Development will focus on drilling and development capital opportunities from $50 million to $150 million.

Latham & Watkins LLP served as legal counsel to PEP.

About PEP
Pickering Energy Partners is an energy-focused financial services firm. Over the past 30 years, our team has deployed over $15 billion across all energy sub-sectors. At our core, we are trusted energy advisors, investors and partners to our clients. Headquartered in Houston, Texas, PEP delivers an experienced, opportunistic team that aims to provide guidance and long-term value for clients while positively impacting the companies and communities that PEP invests in. PEP has been methodically built over several years, spanning multiple commodity and energy market cycles, with the goal of creating a best-in-class, financial services firm. To learn more about PEP and PEP Private Equity, visit pickeringenergypartners.com.

Pickering Energy Partners LP (“PEP”) is an SEC Registered Investment Advisor. Affiliated PEP Advisory LLC (“PEP BD”) is a registered broker-dealer, member FINRA/SIPC.

Jennifer Petree / Tina Tallant
Petree Partners LLC
713.269.3776

SOURCE Pickering Energy Partners