WELCOME TO ACP ENERGY
The High Growth Energy Company
WELCOME TO ACP ENERGY
The High Growth Energy Company
STRATEGY
INVESTMENT PHILOSOPHY
OPPORTUNITY
ACP will focus on producing assets that are either in production or near production to ensure swift cash flow generation and stability to the business. Before investing, ACP will focus on long term net margins, risk management and returns.
Assets must have the following characteristics:
- Demonstrable route to cashflow
- Limited development / ex
ACP will focus on producing assets that are either in production or near production to ensure swift cash flow generation and stability to the business. Before investing, ACP will focus on long term net margins, risk management and returns.
Assets must have the following characteristics:
- Demonstrable route to cashflow
- Limited development / execution risk
Strategy capitalizes on the current supportive macroeconomic environment
- Over a decade of global central bank intervention, results in:
• Compressed return forecasts for all major asset classes
• Investors searching for yield and diversification
- Governments are likely to run expansionary fiscal policies to encourage growth after the COVID induced recession supporting raw materials markets
- ACP can position itself to take advantage of these dynamics by selecting the right assets and investing in them the right way based upon extensive experience in the sector.
- ACP expects to be immediately cash flow generative shortly after an acquisition
- ACP will be active in all aspects of an asset’s operations, working with its partners to create sustainable value.
- ACP is committed to the highest standards of governance and to fulfilling its corporate responsibilities by making meaningful economic and social contributions in the areas where it operates.
OPPORTUNITY
INVESTMENT PHILOSOPHY
OPPORTUNITY
Context
Most E&P’s have recently focused on survival followed by balance sheet repair.
The main drivers for this are:
- Living within their “cash flow” means
- Reducing debt levels
- Returning cash to shareholders via dividends and buybacks
Overall sector investment is down significantly but not uniformly with wide variations depending upon geography
Context
Most E&P’s have recently focused on survival followed by balance sheet repair.
The main drivers for this are:
- Living within their “cash flow” means
- Reducing debt levels
- Returning cash to shareholders via dividends and buybacks
Overall sector investment is down significantly but not uniformly with wide variations depending upon geography and asset type.
Sector focus is on maintenance CAPEX only.
Opportunity
Corporates have targeted investment programs at "high grade" assets while “marginal” assets have seen more significant investment declines.
Production rates and reserves have reduced more prominently in these "marginal" assets.
Assets may be deemed “marginal” for a variety of reasons, such as:
- Limited access to capital
- Complex financial or operating structures
- Are remote from Corporate focus areas
It is on these "marginal" assets that ACP will focus its attention.
INVESTMENT PHILOSOPHY
INVESTMENT PHILOSOPHY
INVESTMENT PHILOSOPHY
ACP Energy asset selection will be based on the following Tenets:
1) Diversified Assets: ACP will focus on investments that can exhibit some inbuilt diversification, such as an asset with multiple producing fields or multiple producing horizons in a single field
2) Rigorous Due-Diligence: Any asset ACP acquires will by its nature be illi
ACP Energy asset selection will be based on the following Tenets:
1) Diversified Assets: ACP will focus on investments that can exhibit some inbuilt diversification, such as an asset with multiple producing fields or multiple producing horizons in a single field
2) Rigorous Due-Diligence: Any asset ACP acquires will by its nature be illiquid. Months of due diligence is required to execute a transaction. Illiquidity can only be mitigated by rigorous due diligence prior to acquisition and by income generation over time
3) Cash Generative: Assets will be in production or very close to it at the time of acquisition. ACP will focus only on opportunities that are high margin and can generate cash flows in short order. ACP will look for assets where prior investment has been inefficient .
4) Energy Transition: The global energy market is likely to be entering a period of transition. ACP will be a responsible custodian of producing assets during this period .
5) Consistency: Consensus may chase a particular investment theme (such as unconventionals) but that does not justify it; ACP will maintain its focus on income generation.
6) Risk Mitigation: We will act dynamically to manage our exposures using hedging instruments where necessary and actively manage the business that we acquire
7) Marketing Rights: ACP will insist on offtake agreements with global commodity buyers to ensure revenue for our production .