We employ a consistent, repeatable and disciplined investment research effort that combines fundamental research together with analysis of energy specific macroeconomic data.  

Our research effort begins with an analysis of energy subsectors and energy specific macroeconomic data.  This identifies industry trends and the relative attractiveness of each subsector.  Top down research composes about 15% to 20% of our research effort.  We then employ bottom-up security research which composes the remaining 80% to 85% of our research effort.

Securities are selected from our database of over 300 oil and gas and energy companies.  Our database is divided into 45 energy subsectors to further more detailed analysis to identify opportunities. We rank securities within the subsectors based on growth, valuation and a host of industry specific metrics. This process identifies securities that deserve further research.

For equities, we focus on companies with exceptional management teams and demonstrated track records for building asset value per share through bull and bear energy markets, and a share price below our estimate of intrinsic value.
For MLPs, we prefer businesses with primarily midstream assets, strategically located in geographic basins or markets we know well, with a business model focused on fee based services.

For corporate bonds, we look primarily at large and midsized oil and gas producers with assets that provide strong principal and interest coverage.  We prefer domestic producers with yields which are attractive relative to the assessed credit risks.