Toby Loftin, Portfolio Manager and Managing Principal, founded BP Capital Fund Advisors, LLC in June 2013. Mr. Loftin joined BP Capital LP in 2010 and served as a member of the investment committee of the private hedge fund.
Mr. Loftin is a Portfolio Manager and Managing Principal of BP Capital Fund Advisors, LLC, which serves as the subadviser to the Hennessy BP Energy and Hennessy BP Midstream Funds. Prior to that he managed the firm’s energy infrastructure MLP investments.
Earlier, Mr. Loftin was a partner of SteelPath Fund Advisors and SteelPath Capital Management — formerly Alerian. He also served as Director of Institutional Equity Research Sales with Royal Bank of Canada Capital Markets, where he focused on the energy sector and the MLP asset class. He earned a Bachelor of Science degree from the U.S. Air Force Academy and a Master of Science in finance from the University of Texas at San Antonio.
In this exclusive 3,159 word interview in the Wall Street Transcript, Mr. Loftin outlines the portfolio strategy for investing the expanding US energy market.
“One was called the TwinLine Energy strategy, and the other was TwinLine MLP strategy. And TwinLine was just a play on words, because in the pipeline business when you lay a pipe alongside an existing pipe, that is called twinning pipe. And so we were twinning the legacy of Boone Pickens and BP Capital through the establishment of these strategies. The MLP fund is focused on the midstream portion of the energy value chain. So we are approaching the end of the fifth year of operating the strategies.”
An example of the T. Boone Pickens strategy of buying deep value energy stocks is Diamondback Energy (NASDAQ:FANG):
“Well, the way to look at it is, I have a producer who is in, say, the Williston Basin, in the Bakken or even in the Powder River Basin or even the Eagle Ford. In those plays, there are typically one or two layers under the surface from which oil and gas can be extracted, known as pay zones, but in the Permian, there’s four, possibly five different pay zones from which they can achieve production.
Diamondback is squarely fitted right into the Midland Basin within the broader Permian Basin. Their opportunity set to create value and grow despite the fact that oil prices are challenging is what’s appealing to us. It has a lot to do with having higher-quality acreage that will yield more oil and gas and a high-quality management team.”
Get all the details on this energy stock portfolio by reading the entire 3,159 word interview in the Wall Street Transcript.
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