Finding the Elusive Eagle Ford Heir – SA Express News

by Marilou Moursund on April 9, 2013

in Crossvault Capital,Energy,Investment Strategies

I was interviewed by Greg Jefferson for his article “Finding the Elusive Eagle Ford Heir” in Sunday’s Express News.  From the linked article:

It quickly became clear that, with a few exceptions, there’s no orgy of  spending under way — no rush into speculative and/or squirrelly investments, no  gaudy, conspicuous consumption, and not a lot of outsize gifts to charities.

Not yet anyway.

For one thing — after the lease deals are done — royalties are paid on stuff  that comes out of the ground, and production is still ramping up in the  region.

“Last year, we started seeing the lease bonuses,” said Marilou  Long, a partner at locally based Crossvault  Capital Management, which caters to high-net-worth clients. “And now we’re  seeing royalty payments starting to come in.”

What they’re doing with that infusion so far borders on humdrum. Long says  clients benefiting from the play are putting a chunk of their royalties into  accounts balanced between stocks and bonds. As their cash flow increases, they  might feel a little friskier and tip more toward stocks. They might even dabble  in hedge funds.

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