Minerals & Royalties Podcast
Troy Eckard, CEO of Eckard Land & Acquisition
Published 09 March 2021
Troy Eckard, CEO of Eckard Land & Acquisition joins us walk through his 30+ year career in the oil patch and how he has managed to successfully raise hundreds of millions of dollars from high net worth investors. Listen here.
● Troy Eckard, CEO of Eckard Land & Acquisition started off his career in the oil and gas industry in 1985, where he worked at Sunset Securities.
● In 1991, Troy established his own firm called Eckard Investment Services that looked to raise capital from high net worth individuals for oil and gas drilling projects.
● Troy is not a believer in the traditional PE model and thus has been raising capital from high net worth individuals his entire 35+ year career. His transparency, passion, and dedication has enabled him to develop long-standing relationships with these investors over several decades. The number thing high net worth investors want in their investments is alignment with the companies and management teams they invest in.
● Throughout his career, Troy has raised money mainly for exploration projects. In the late 2000’s, Troy and his partners, also put together a large private midstream company called Kinetica Partners, which currently owns and manages thousands of miles of
pipelines in the Gulf of Mexico.
● Troy believes that OPEC will continue to own the US market as long as shale development continues to be so reliant on debt financing. After the downturn of 2014-2015, Troy realized that the threat of US shale production would continue to trigger market intervention by OPEC in order to keep US shale production in check, which in turn would lower oil prices. This dynamic coupled with the US shale market’s reliance on debt has led Troy to believe that the oil & gas industry will be experiencing shorter market cycles of ~5 years going forward, thus making it very difficult to make money for investors on drilling projects.
● The minerals & royalties asset class is not reliant on debt financing, which is why Troy felt it would be the best way to manage downside risk for his investors in this new market paradigm. As a result, Troy entered the minerals space in 2018, looking to buy
distressed minerals assets in the Anadarko basin under his strategy “AML”, which stands for Aggregation, Maturation, and Liquidation.
● At Eckard Land & Acquisitions, their number one focus is the operator with a secondary focus on good rock. They buy three different levels of minerals: cash flowing minerals for income, minerals for future growth, and vintage minerals that will get activated down
● Troy says that lots of high net worth individuals are looking to diversify away from the stock market and find alternative hard assets that they can protect their money with. The GameStop and AMC stock phenomenon has spooked investors. Furthermore, a weakening US dollar and unfavorable Govt policy has let investors scrambling for alternative investment options. This poses a great opportunity for minerals companies who are looking to source capital.
Eckard Enterprises, LLC (“Eckard”) is a family-owned and operated energy asset management firm, focused on the U.S. oil and gas industry which includes water rights, oil and gas mineral rights, exploration and production, steel fabrication, natural gas and crude oil pipelines, and other natural resource related opportunities. Since 1985, Troy W. Eckard has dedicated his entire career to the U.S. energy industry. Eckard has a wealth of knowledge and expertise they offer to private investors who seek to develop a successful energy portfolio.
Eckard Land and Aquisition, LLC, is a oil and gas mineral company focused on acquiring minerals, maturing the mineral assets, and growing a strong mineral portfolio for its Partners.
Find out more http://www.eckardenterprises.com
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