"The more popular investment vehicle for mineral interests recently has been the emerging sector of mineral aggregators."
Public Royalty Interests: Picking the Right Comparable | Mercer Capital 9.19.2019
Jubilee offers yield-oriented investment vehicles that strategically allocate capital to mineral assets with upside across multiple, proven basins. Jubilee provides diversified exposure to mineral ownership, and distributes returns from free cash flow derived from royalty payments. Jubilee specifically focuses on acquiring ahead of operators with documented production plans and strong balance sheets. Assets must be unitized at a minimum for consideration
Location matters.
Jubilee focuses on acquiring royalty rights in proven basins where declines are more predictable, and future upside via new well operations is likely.
The fund acquires producing royalties with upside in the following basins:
Permian | Eagle Ford | Anadarko | Barnett | Haynesville | Appalachian | Bakken
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Capturing acreage in units on the verge of production will yield the optimal return due to the cost/benefit tradeoff of such areas. Anticipating production requires a strong network as well as an understanding of the forces driving site selection.
Fund profitability is driven by maximizing the spread between acquisition costs and royalties received. Influencing that spread through favorable contracts is one method to improve fund economics.
Maximizing returns requires minimizing unproductive expenses such as transactional costs and overhead thereby enabling more competitive price points.
High performing funds must exhibit selectivity in their investments which requires organically generating adequate deal flow.