Some private equity (PE) sponsors are charting a course that runs counter to recent public E&P trends, attendees heard at the recently held Energy Capital Conference hosted by Oil and Gas Investor. The trend is seen in PE investments targeting growth rather than the capital discipline increasingly espoused by public E&Ps, as well as a natural gas perspective that looks beyond near-term pressure on prices.
Regarding the pressure to show capital discipline, “fortunately it’s on the public companies,” said Sean O’Donnell, managing director with Quantum Energy Partners. “While public companies have to zig, private capital can zag. We’re not burdened with having to be free cash flow positive in 2018—it’s quite the contrary. We’re full speed ahead.