The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 6 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
Reynolds: CrownRock used mutual ownership rather than tiered PE waterfalls
“This was not a term sheet that said, hey, under certain circumstances, the management team take is X percent of the profits, and above that level, it's Y percent of the profits. It was a mutual ownership structure from day one, where the management team and th…”
Reynolds: In May 1997, Santa Fe's $1B IPO overshadowed Amazon's debut
“We had just taken public Santa Fe drilling, which was a billion dollar IPO that Goldman Sachs was the lead manager of. Two weeks prior, Amazon had gone public. No one paid attention to Amazon in May of 97. Everybody paid attention to Santa Fe.”
Reynolds: Energy volatility demands long-term private capital over quarterly public equity
“There was just far too much cyclical volatility that you needed to invest through cycles with long-term capital. Think long-term, not think about the next quarter.”
Reynolds: CrownRock's success cannot be replicated across standard energy PE deals
“There are attributes of the people, the Midland Basin, that you just don't replicate.
It's a very special case, and there's probably some danger in thinking there's an application in a postmortem for everything we do going forward, because there's certainly no…”
Reynolds: Fled institutional shale capital will not return anytime soon
“That capital's all fled. It just did not perform well in aggregate, and it doesn't look like it's coming back anytime soon.”
Reynolds: Lime Rock exited two early investments that went bankrupt within five years
“We owned an oil sands company in Canada, first deal we did. We owned a shallow water jackup drilling company in the Gulf of Mexico, and our second fund outsized ROIs in both cases. In both cases, within five years of our exit, those companies were bankrupt.”