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In order to meet our goal of providing stable
and growing cash distributions to our unit holders,
we plan to continue to follow our core investment
strategy, which includes the following principles:
Acquire long-lived assets with low-risk
exploitation and development opportunities
with a blend of the following characteristics:
·
Large, mature and complex oil and gas accumulations,
which offer the most potential for us to
increase efficiency and add value. Properties of
greater size and complexity increase the probability
that previous owners failed to fully exploit reserve
potential, as recent advances in computer
visualization technology have dramatically improved
the ability of scientists to visualize complex
reservoirs and uncover bypassed oil and gas zones.
In addition, larger accumulations possess the
economies of scale that allow incremental
improvements in oil and gas recovery to result in
substantial increases in reserves. Larger
accumulations also provide a greater opportunity to
increase reserves as advances in technology and
higher commodity prices improve the economics of
extraction.
·
High percentage of proved developed producing
reserves,
which tend to be the lowest risk category for oil
and gas production. These reserves usually provide
immediate cash flow, and future production from
proved developed producing reserves is typically
easier to predict due to the availability of
historical data.
·
Longer‑lived, low-decline reserves,
which typically exhibit more sustainable production
profiles, thereby better enabling us to grow
reserves and production and increasing the
likelihood that acquired assets will benefit from
future advances in reservoir science and technology.
·
Geographic diversification
into
California,
Wyoming, Florida, Michigan, Indiana, Kentucky and Texas extends our
exploitation capabilities throughout the United
States.
Use our technical expertise and state of the art
technologies to identify and implement successful
exploitation techniques to maximize reserve
recovery.
We plan to balance our acquisition efforts with
growth through internally generated drilling and
production optimization projects. We believe our
technical expertise and application of state of the
art reservoir engineering and geoscience
technologies are key attributes that differentiate
us from many of our competitors, and we intend to
utilize these resources in maximizing our production
and ultimate reserve recovery.
Reduce cash flow volatility through commodity price
derivates.
When appropriate, we will enter into hedging
transactions with unaffiliated third parties in
order to reduce our exposure to fluctuations in
commodity prices and achieve more predictable cash
flows.
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