Investment Strategy

Financial and Acquisition Targets

  • Multiple acquisitions per partnership in a target market of $5-50mm per acquisition
  • Generate long term (10 year +) annualized financial performance of 20%+ IRR Return on Partner Equity
  • Utilize Leverage through a Revolving Credit facility to enhance partner return
  • Strict Cash Flow Management – Historically pay off debt with operating cash flow and begin Partner Distributions thereafter

Asset Investment Objectives:

  • Geographic concentration in proven, mature fields with aggregation potential
  • Established production with long remaining reserve life (10+ years)
  • Likely development/acceleration potential in first few years
  • Operational and General/Administrative cost reduction opportunities
  • Reserves with Upside Growth Potential and Value Splits:
    • Proved Producing reserves range from 40-60% of Proved reserves
    • Proved Undeveloped Reserve Upside of 30-60%
    • Longer term Probable Upside

Risk vs Reward

  • BXP’s technical expertise and discipline in evaluating, acquiring, operating and divesting oil and gas properties seeks to mitigate the inherent risk in owning oil and gas assets and subsequently enhance investment returns. BXP targets assets that possess an attractive combination of current cash flow yielding an 8-12% IRR, but with impactful low- to medium-risk development opportunities that elevate overall investment returns to a 20% IRR or greater. The unique combination of acquiring assets on the low-risk end of the traditional oil and gas investment spectrum, but delivering correspondingly high investment returns is what distinguishes BXP’s investment performance.