Family offices are benefiting from a recent surge in oil prices after making opportunistic investments in the sector when other institutional investors pulled back due to ESG pressures. As prices climb amid geopolitical tensions, those earlier bets — made when valuations were low and capital was scarce — are now delivering strong returns.
Haynes Boone Energy Finance Co-Chair Ellen Conley and Investment Management Global Chair Vicki Odette spoke with CNBC about this trend, including what is driving continued interest in energy and how family offices are approaching the sector today. Read an excerpt below.
The Trump administration’s efforts to prioritize oil, gas and nuclear power over clean energy have given investors more confidence in the sector, according to Ellen Conley, lawyer and co-chair of Haynes Boone’s energy finance practice group.
Plus, the potential for cash dividends appeals to family offices, she said.
“Family offices are viewing these assets as cash-flowing real assets rather than a speculative commodity gamble,” she said. “We’re dealing with real assets, particularly in Texas, where you have this repeatable cash flow and predictive models.”
Conley said investors’ interest in energy was already on the rise before the recent oil surge. But headlines about oil prices tied to the Iran war have spurred queries from family offices looking to invest, according to Vicki Odette, global chair of Haynes Boone’s investment management practice group.
Read the full article on CNBC here.
