A yield-oriented private equity fund acquiring PDP-focused operated working interests across the Williston Basin, North Dakota & Montana.
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Buy Proven Cash Flow Below Intrinsic Value
PDP assets from PE sponsors under fund-life pressure. Before they reach a data room. Cash-flowing wells from day one. No drilling risk. No exploration exposure. Distributions begin immediately.
Operate
Control Every Cost From Day One
ACP assumes operatorship at every closing. Every vendor contract, workover decision, and LOE dollar is managed in-house. Operational discipline protects quarterly distributions from cost creep.
Optimize
Unlock Value Prior Operators Left Behind
MEOR, targeted workovers, recompletions, and acreage consolidation. Every acquisition carries HBP acreage at zero cost basis in our underwriting. Incremental value that flows directly to investor returns.
The Opportunity
Private equity sponsors deployed billions into the Williston Basin during the shale boom. Those funds are now past their typical harvest dates, and LPs are demanding liquidity. The result is a sustained, multi-year supply of mature, cash-flowing PDP assets entering the market, priced to move rather than priced to value.
Public companies won't touch sub-$100 million packages. Most private buyers lack the operational infrastructure to assume operatorship. ACP Energy Fund I was purpose-built for exactly this moment.
Investment Principles
Every acquisition is underwritten exclusively on proved developed producing reserve value. No credit for undeveloped locations or probable reserves. The entry price must generate a minimum 20% IRR on PDP alone, before any operational improvements. HBP acreage, recompletion candidates, and additional pay zones represent upside we didn't pay for at entry.
Direct operatorship means we control every vendor contract, every workover decision, and every dollar of LOE from day one. In mature basin acquisitions, operational control is not a secondary consideration; it is the primary source of value creation.
Every acquisition carries held-by-production acreage we assign zero value to at entry. High NRI lease structures let us capture overrides from future operators. Zero cost basis. Upside that was never in the underwriting.
Senior bank debt reduces equity requirements and compresses the time to clear return hurdles. The discipline that makes leverage responsible is hedging: 65-75% of production protected at close. Debt service is covered by contracted cash flow, not a commodity price assumption.
The Operating Edge
Workovers and recompletions to identify bypassed pay zones, replace failed equipment, and re-perforate underperforming intervals. MEOR deployment averaging +8.7% per-well uplift. Well reactivations where economics justify.
Every back-office and field service contract renegotiated within 60 days. Direct field management with ACP pumpers on every lease. Lean operations through economies of scale and existing relationships.
Every development dollar allocated against a ranked opportunity set. Operational execution converts probable and possible reserves to proved developed. PUD conversions funded only when IRR exceeds 50%.
Management Commitment
The Principals are contributing $5.0MM in producing oil and gas assets, a fully built operating platform, and an active acquisition pipeline. Every component is built, licensed, producing, or executed. Assets are contributed to Class A shares with no preferred return. Management bears real economic exposure alongside LP capital from the closing date.
Deployment
Acquisition I closes. Operatorship assumed. LP capital deployed. 8% preferred return begins accruing. First quarterly distribution targeted.
Combined portfolio reaches ~4,000 BOEPD. Quarterly distributions begin flowing through the waterfall.
Ongoing cash distributions. 65-75% of production hedged. Debt service first, then return of capital and preferred return to LPs.
Senior debt fully amortized. Terminal value based on remaining PDP reserves. All subsequent net cash flow to LP waterfall.
Fund Structure
ACP Energy Fund I is structured with institutional governance and full management alignment. LP investors receive an 8% cumulative preferred return through a sequential distribution waterfall. Management carry only activates after investors have received full return of capital plus accrued preferred return. The GP contributes $5.0MM in real assets alongside LP capital — creating genuine alignment from day one.
Qualified Investors
For accredited investors interested in learning more about ACP Energy Fund I, detailed materials including the Private Placement Memorandum are available upon request.
investors@acpenergy.com