Minerals & Royalties Podcast
Chris Phillips, CEO, Phillips Energy
Published 22 April 2021
Chris Phillips, CEO of Phillips Energy joins us to discuss his team's journey in the Minerals space. Back in 2006, Phillips Energy became the first ever PE backed minerals company when they joined forces with EnCap, which led to a 10 year partnership across for 4 funds. Fast forward to today, Chris and his team are now back at it as they look to raise institutional capital for their next minerals fund. Listen here.
● Chris Phillips is the CEO of Phillips Energy, which was the first ever private equity backed minerals & royalties company. After managing a small friends & family fund in 2004, Chris and his team partnered with EnCap to form a partnership in 2006, which lasted until 2016 and spanned 4 different funds.
● Before getting into minerals, Chris spent 10+ years as a gas trader, which gave him a new perspective on the oil industry and a greater appreciation for risk. The cash-flow aspect of minerals and the downside risk protection of the asset class was particularly appealing
● Across the 4 EnCap funds, Phillips Energy deployed a diversified ground game strategy that was focused on PDP heavy assets. Chris and his team believe that a diversified approach, both by basin and operator, is a great way to financially engineer a stable portfolio of cash-flow for investors, while providing downside protection.
● After the partnership with EnCap wound down in 2016, Phillips Energy began ramping back up in 2018 to raise capital directly from institutional investors. Chris believed that the inflationary hedge and yield aspects of the minerals asset class would be very appealing
to pensions and other cash-flow investors.
● After a few years of being on the road, Phillips Energy is building momentum on their fundraising efforts and is working towards their first close on their next minerals fund, which is targeting a $300mm raise.
Before establishing Phillips Energy, Mr. Phillips was the Chief Executive Officer of Phillips Energy Partners for ten years from 2006 to 2016. He partnered with EnCap Investments and led the investment team in four separate funds, Phillips Energy Partners’ I, II, III, and IV. Prior to Phillips Energy Partners, Mr. Phillips worked at Texla Energy Management in Houston, TX and Cornerstone Natural Gas in Dallas, TX. He is a Board Member at Southfield School and the Betty & Leonard Phillips Deaf Action Center. Mr. Phillips is also a member of Independent Petroleum Association of America, Louisiana Oil and Gas Association, American Association of Professional Landmen, and NGET. He received a B.B.A in Business and Petroleum Land Management from the University of Mississippi.
Phillips Energy is a royalty acquisition company that invests in producing oil and gas assets to create portfolios tailored to the institutional investor. For more than 12 years, our highly experienced team has executed successful mineral investment strategies with significant rates of return for our stakeholders. Phillips has developed proprietary technology to efficiently evaluate opportunities and to accurately manage the highly fractionated asset class while utilizing its quantitative model to drive capital optimization and fund performance.
Find out more about http://phillips.energy/
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