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Jonathan Farber

Co-Founder and Managing Director, Lime Rock Partners · 1 appearance on the record.

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investorfounderexecutivelrpartners.com ↗

Jonathan Farber co-founded energy private equity firm Lime Rock Partners in 1998 following roles in research and investment banking at Goldman Sachs. He led Lime Rock's investment in CrownRock, which was acquired by Occidental Petroleum in 2024 for $12.5 billion.

9statements → 2claims → 1claims resolved → 3.89/5average certainty → 2.22/5average debate potential → 2said about them ↓

1 supported 0 partly supported 0 contradicted 1 not checkable as stated how the 2 claims stand · each chip opens the sources

2 assertions · 1 opinion · 4 insights · 2 disclosures · every statement was checked. The predictions and assertions are the 2 claims: statements the public record can support or contradict. 1 is resolved, and 1 names no date, number or outcome precise enough to check. Everything else (opinions, insights, what ifs, disclosures) can never be settled by the record, so it carries no assessment.

The record, in short

What the tape says about how Jonathan argues and how the claims held up. Everything they said, and everything said about them, is in the tabs below.

Their most notable supported claim

Assertion Supported
Farber: Wolfberry was historically a promoter's paradise that produced oil without payout
“For many years, this was known as a promoter's paradise because you could drill a well in the Wolfberry and you always produced oil. It just typically didn't pay out.”
Jonathan Farber Jan 20, 2025 ▶ 17:33 Striking Oil – CrownRock by Lime Rock Capital (EP.428)

How they sound: not measured why? →

We measure speaking style by listening to the audio itself, and a fair number needs at least 2,000 words from one person on tape we have measured. There is too little of Jonathan Farber on measured tape to publish a rate. This says nothing about how they speak.

Everything Jonathan Farber said on Capital Allocators that made the record, most notable first. Filter by type, assessment or year in the ledger →

Insight
Farber: Early one-off horizontal drilling boosted short-term output but damaged ultimate recoveries
“One of the ways that a lot of our peers adopted was when horizontal drilling was quite early, before we had really refined the well design and the fracking methodology, people went and drilled a lot of one-off horizontals in virgin acreage on drilling units th…”
Jonathan Farber Jan 20, 2025 ▶ 35:40 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Insight
Farber: Private equity investors irrationally sell 3x to 5x winners too early
“There's an anchoring effect in private equity, like in every area of investing, that is not rational. It's a very real and tangible thing. In our business, That's manifested by people looking at a three bagger or five bagger and saying, well, that's a great de…”
Jonathan Farber Jan 20, 2025 ▶ 41:16 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Insight
Farber: CrownRock exit driven by completion tech reaching theoretical maximums
“There's only so much resource that you're ultimately going to recover, and we just felt like we were getting closer to the sort of maximum economic recovery point, and that, that changed the risk calculus. You had this big asset, you had market risk in retaini…”
Jonathan Farber Jan 20, 2025 ▶ 48:02 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Assertion Not checkable as stated
Farber: Exxon's Pioneer deal removed two of CrownRock's best potential buyers
“The flip side of that was the business had been so successful that we got to a size that very few companies could afford to bid in that process. And the deal that John was talking about with Exxon taking out Pioneer, that took two of our best buyers off the ta…”
Jonathan Farber Jan 20, 2025 ▶ 49:34 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Opinion
Farber: Current lower ROI energy environment offers peak risk-adjusted attractiveness
“I think we're very driven by conditions in the industry today, and ironically, that is probably creating an overall lower ROI scenario, but one which on a risk-adjusted basis, we think is among the most attractive periods of investing that we've seen.”
Jonathan Farber Jan 20, 2025 ▶ 1:02:05 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Assertion Supported
Farber: Wolfberry was historically a promoter's paradise that produced oil without payout
“For many years, this was known as a promoter's paradise because you could drill a well in the Wolfberry and you always produced oil. It just typically didn't pay out.”
Jonathan Farber Jan 20, 2025 ▶ 17:33 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Disclosure
Farber: Lime Rock avoids aggressive debt, relying on heavy hedging
“And I think one of the calling cards of Lime Rock as an investment organization is we're reluctant to use aggressive leverage structures. We used leverage less aggressively, and when we did have leverage, we used hedging aggressively to ensure that we had the …”
Jonathan Farber Jan 20, 2025 ▶ 29:00 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Insight
Farber: Horizontal wells drove CrownRock's value, enabled by vertical drilling
“If you just look at the absolute breakdown of value creation in terms of vertical wells versus horizontal wells, Almost all the value creation ultimately resulted from the horizontal wells. We wouldn't have had the land to drill those wells on unless we held t…”
Jonathan Farber Jan 20, 2025 ▶ 30:16 Striking Oil – CrownRock by Lime Rock Capital (EP.428)
Disclosure
Farber: Lime Rock funded CrownRock land buys by selling packages to MLPs
“We sold a number of packages early on in the investment to MLPs, to these production-based partnerships that were public trading at good values, and we were able to lock in a lot of capital to cycle into land over time, and that's how we kept the initial inves…”
Jonathan Farber Jan 20, 2025 ▶ 36:38 Striking Oil – CrownRock by Lime Rock Capital (EP.428)

The other half of the tape: Jonathan Farber's own voice is left out of every number here. Other people bring the name up 1 time in 1 episode on Capital Allocators. 1 statement on the record names them. every mention, with the transcript →

Who brings them up most Gary Sernovitz 1

Statements about Jonathan Farber, by other people (1)

Assertion Supported
Sernovitz: Lime Rock founders had zero buy-side experience before managing $10B
“They started the firm when they were 28 and 30. They had never worked in private equity. They never worked on the buy side. So to see how you invent a culture, invent a private equity firm, it's amazing you're allowed to do that in this world, and ten billion …”
Gary Sernovitz Dec 18, 2023 ▶ 48:25 Gary Sernovitz - Inside the CIO Seat (EP.357)

Every mention by year

tap a year for its mentions
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0112023episodes it came up in
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2023 1 mention in 1 episode

Appearances (1)

EpisodeDateSpeaking time
Striking Oil – CrownRock by Lime Rock Capital (EP.428) Jan 20, 2025 13m
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