An energy investment panel at the recent IHS Herold 20th Annual Pacesetters Energy conference held in Stamford, Connecticut, illuminated best practices for E&Ps seeking capital. Dispensing advice were three capital providers: Oliver Goldstein, managing director of private-equity firm Pine Brook Road Partners ; Jeff Bernstein, senior vice president of research at AH Lisanti Capital Growth, a manager of institutional funds focused on small-caps; and Sam Oh, a partner with private-equity provider Apollo Management.

All agreed on the allure of great managers with great assets, and the indispensible aspect of hedging ...