Why Independent Analysis Came First

PEP chose to invest materially in independent data and analysis before deploying investor capital into wells.

A sponsor’s own assumptions are difficult for an outside investor to test. Independent industry data provides a reference point that does not originate with the sponsor: how wells and operators have actually performed, what they have cost, and how results change under different commodity prices.

About Rystad Energy

Rystad Energy is a global energy research and analytics organization. It is widely relied upon by private equity energy funds, public E&P companies, investment banks, and reserve-based lenders.

The Work Performed

PEP engaged Rystad Energy across two engagements, representing approximately $200,000 of third-party analytical work related to the development of the company’s strategy and economic framework. The work included a proprietary well-level dataset and a 10-year corporate financial model. Areas of analysis include:

How the Analysis Informed PEP’s Strategy

The analysis examines operator-specific performance, basin-level economics, and assumptions about costs, production and pricing drawn from independent data. Corporate financial modeling brings well-level analysis into a portfolio view and examines how different commodity-price scenarios affect the results.

Analysis Is Not a Recommendation

Rystad Energy’s work is analysis prepared for PEP. It is not an investment recommendation, and Rystad Energy does not recommend, sponsor or endorse PEP or any investment in PEP.

Models are built on assumptions and estimates. Actual results may differ materially from modeled outcomes, and modeled or illustrative outcomes are not guarantees of future performance. Independent analysis adds rigor. It does not add certainty.

The Continuing Role of PEP’s Technical Leadership

Independent data is an input to underwriting, not a substitute for it. PEP’s investment process is intended to be supported by in-house technical leadership: petroleum and reservoir engineering oversight, and geoscience expertise in basin analysis and subsurface evaluation.

Working with the independent dataset and financial model, that capability is intended to allow PEP to evaluate development opportunities at a granular level and to allocate capital based on both independent data and applied industry experience.

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