By investing in US upstream oil and gas exposures including royalties, asset equity and mezzanine debt, Longreach Energy aims to deliver investors a 20% IRR via high yield income (10%+) and capital growth (10%+).
The Longreach Energy Investment team has decades of deep technical and commercial experience in these markets. Between 1995 and 2011, the investment management principals provided equity and debt financing to upstream oil and gas companies. In 2011 the same team departed Macquarie Bank to establish Giant Capital Management and between 2011 and 2017 completed over 35 transactions, worth over US$1.6 billion.
The Investment Manager believes that the oil and gas markets are primed for medium term cyclical recovery. Moreover that the US onshore fields provide the best access to the development of low marginal cost production which will provide opportunity to deliver superior investment returns.
The Investment Manager anticipates that power generation from coal and diesel will decline and the requirement for reliable base-load electricity will see a steady increase in gas-to-power generation, integrated with the growth of renewable fuels. Global GDP and population growth together with the displacement of coal fired power generation is expected to deliver large growth in demand for natural gas.