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  Strategy  
 

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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