Over the years, Energy Capital Fund President Daniel Smith has been involved in the close of more than half a billion dollars in development drilling and investments. His incredible success has translated into incredible success for ECFA. This is what that looks like:
Oil and Gas Investment Strategy
The ECFA oil and gas investment strategy is incredibly complex in practice, yet simple on paper. Our approach to investing consists of three general components:
Many oil and gas investment funds are comprised of scores of projects with varying probabilities of production. In the end, the collective performance of the fund enables the investor to walk away with a moderate ROI.
That’s not us.
We pair extraordinary investments with extraordinary investors.Daniel Smith, President ECFAOur unique skill set and market positioning empower us to take a different approach. Our oil and gas investment strategy targets low risk-high probability investments, which, as you can imagine, are difficult to find. In fact, more than 90% of all oil and gas investment opportunities fail to meet our minimum requirements.
How do we determine the quality of a project? Since the mid-90’s, Daniel Smith serves the oil and gas industry as a professional civil engineer by degree and registered petroleum engineer by examination with the Texas Board of Professional Engineers. His hands-on experience in drilling, hydraulic fracturing, and artificial lift equip him to evaluate every potential project we see.
Cut corners in project evaluation? No. We’re not aloof investors. We invest our own money into almost every project we fund, so neither our integrity nor out bank accounts allow for half-ass project evaluation.Daniel Smith, President
Because our oil and gas investment strategy hinges upon investing in phenomenal projects, we go on site to inspect a project’s every nook and cranny before a penny is ever invested. With precise knowledge of the intricacies of each potential oil and gas project, we evaluate whether the project falls into the top 10% of all investment opportunities. If it does, then we supply the capital it needs. If it doesn’t, then we don’t.
It’s that simple.
Because legitimately phenomenal investments are always in high demand, we only partner with phenomenal investors. As result, an essential aspect of the Energy Capital Fund oil and gas investment strategy is partnership exclusively with accredited investors.
Should people invest with Energy Capital Fund Advisers? In a word, “Yes.” I can talk about our relationships with Iroquois, XTO Energy, and ExxonMobil, but it’s bigger than that for me. I tell people to invest with us because that’s what my family does. I can’t give a stronger endorsement than that.