Bitcoin

Strategy

"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 is a yield-oriented investment vehicle that strategically allocates 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

Real Estate
vs
Royalties
Monthly cash flow from property
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Monthly cash flow from wells
Tenants pay rent
vs
Operators pay royalties
Management upkeep and expenses
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No Management upkeep or expenses
Limited growth or upside potential
vs
Growth and upside from new wells
Yields typically capped at 10%
vs
Annual yields begin at 10%
Investors pay property taxes
vs
Investors get 15% tax credit on completion
Monthly cash flow from property
vs
Monthly cash flow from wells

Areas of Focus

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

Factors for a Successful Fund

Anticipate production

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.

Favorable contracts

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.

Transcational efficiency

Maximizing returns requires minimizing unproductive expenses such as transactional costs and overhead thereby enabling more competitive price points.

Adequate deal flow

High performing funds must exhibit selectivity in their investments which requires organically generating adequate deal flow.