Family Offices

  • Investing for cash flows
  • Diversification on several SLE shares reduces risks
  • Depending on sophistication, take speculative positions on evolution on Ryder Scott rating

Insurance Companies

  • ESG is a must have (regulations, internal policies, members)
  • Cash Flows from SLEs is the main motivation. Insurers will invest ahead of capital calls to get financial returns on investments
  • Long dated developments are interesting hedges against inflation
  • SLU Notes provides good yield within ESG ecosystem with great trading MTM collateral

Hedge Funds

  • Arbitraging SLE shares vs the price of Oil & Gas
  • Trading SLE Shares on news flows
  • Read across from value of SLEs to Capitalization of listed E&Ps
  • Accumulate positions and trigger changes of Prime Operators for good reasons
  • Price discovery on all different parameters leads to better hedging

Trading Firms

  • Take speculative positions ahead of evolution on Ryder Scott rating, deep knowledge of well control
  • Take positions in core Permian Basin, strategic oil
  • Options on future delivery of Oil & Gas returns in several years
  • Arbitraging with crude oil future deliveries

Large Asset Managers

  • ESG is a must have (regulations, internal policies, members)
  • Diversification on a new asset class, low correlation with existing portfolio
  • Access to real assets with no specific knowledge – Heavy reliance on RSC rating
  • Access good returns in hard-to-find ESG assets
  • Make an immediate impact

E&Ps and O&G
Specialists

  • Creating SLEs and listing them on Marketplace
  • Transition to lighter balance sheets and Asset Management remuneration Model
  • Arbitraging SLE shares depending on quality of Rock and perceived evolution of technology
  • Trading SLE Shares on news flows
  • Sell SLE shares for Capex Funding

Pension Funds

  • Make an immediate impact – ESG is a must have (regulations, internal policies, members)
  • Diversification on a new asset class, low correlation with existing portfolio
  • Access to real assets with no specific knowledge – Heavy reliance on RSC rating
  • Access good returns in hard-to-find ESG assets
  • Hedge against Energy Prices Inflation through SLEs with Long Term Development plans

Lenders

  • Safer lending thanks to liquid Mark to Market Collateral
  • Lower yields but better margins through bulk lending to portfolios of SLE notes
  • Finance Extra Capex for ESG compliance made easier with ESG trading premium increasing value of collateral.

Sovereign Funds

  • Build Strategic Positions on Crème de la Crème Oil & Gas assets
  • Gain exposure to Future Production of Oil & Gas
  • Back outstanding Operating Companies by accumulating positions on their SLEs
  • Convince/push E&Ps to transition to leaner balance sheets for better investors ROI
  • ESG is a key angle to make sure portfolio stands future policy changes

SPAC

Leveraging Specialist Investors higher financial skills:

  • Transformation of Raw Acres in an ESG Investable Product
  • A shorter timeframe: 18 months to 3 year process
  • Large valuation differential (up to 7 times return VS Generalist ESG Investor)
  • Value creation by feeding the market