Investment Strategy

 
 

Investment Strategy

EnCap seeks to invest in partnerships with seasoned management teams that have a demonstrated track record of value creation, the ability to manage complex companies during periods of rapid growth, and a desire to work with a value added partner. When making investments, EnCap seeks to implement capital structures that are appropriate to facilitate the company's continued growth, including providing sufficient equity to ensure access to capital for acquisitions, development projects and execution of the company's business plan.

EnCap’s capital is typically advanced incrementally, and whether the opportunity is centered on a reserve acquisition, drilling project or midstream investment, the firm is heavily focused on managing risk to ensure capital preservation. EnCap expects to continue to benefit from substantial proprietary deal flow, including the opportunity to reback historical management teams on the heels of successful exits. The principals and investment professionals have spent their entire careers developing extensive contacts and relationships within the oil and gas industry and energy-related financial community.

EnCap believes the landscape for equity investment in oil and gas remains compelling. EnCap will continue to identify the segments of the market that offer the most attractive opportunities and adapt or fine tune elements of its overall strategy to take advantage of the current environment, all while adhering to the investment principles and employing the risk management tools that have guided the firm for more than 29 years.