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Long-lived Proved Reserves
with a 70% PDP value mix. Low risk, conventional, onshore production
with established histories and low operating costs. Control of
operations rests in a majority of the properties |
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Limited Partnership in
which GE Capital invests from 75% - 95% of equity
capital as a limited partner (up to 99% in select
cases). The customer would retain an interest as
general partner and share in the upside residual
through an increased back-in after limited partner
achieves target rate of return |
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Partner operates
properties and handles day-to-day property management;
major decisions are handled at the Partnership level |
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$10 million minimum
investment |
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Long-term investment
outlook; typical holding period of 3 - 5 years, but would
opportunistically exit |
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Valuation
based on independent engineering and forward price curve |
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Partnership
mitigates commodity price risk through financial
hedges or physicals contracts |
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Reserves are risked
according to classification |
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11% - 15% target rates of
return based on specific transaction details such as asset type,
cash flow profile, operating margin, production risks, etc. |
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