Fifteen years on, and the promises of the shale revolution only partially have been realized. On the plus side, global consumers benefit from lower oil and natural gas prices, the environmental burden of coal-fired power is reduced while renewable energy sources are enabled by low-cost natural gas, governments fill their coffers with tax and royalty receipts, and C-suites and board rooms are flush with cash. For investors, however, the score card is decidedly mixed.

To some extent, that is the nature of deploying capital in a commoditized industry. However, we believe that the shale industry has evolved such that today certain companies possess a business model capable of delivering returns well beyond simple price exposure. The market doesn’t seem to appreciate this fact, and passively waiting for investors to figure it out is unacceptable. We expect management teams and boards to act, but before we advocate for a response some historical context is in order.

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