The SteelPath Panoramic strategy takes a panoramic (i.e., wide-reaching and comprehensive) view of the investment universe to include both companies across the traditional energy value chain as well as energy beneficiaries (e.g., chemical and other material manufacturers, engineering and construction firms, and other industrial companies). The energy value chain, typically divided into upstream, midstream and downstream, refers to the chain of activities related to the development, production, transportation, distribution, processing and refining of energy.
The OFI SteelPath team employs a fundamental approach to investing with an emphasis on business risk assessment and bottom-up analysis. On a macro level, our commodity price scenario analysis across medium and long-term horizons provides a framework for sub-sector allocation and investment selection. We then seek to perform fundamental, asset-level analysis to find companies with superior risk/reward potential across a range of commodity price scenarios. Furthermore, we intend to focus on capital preservation through intentional portfolio construction, remaining cognizant of cross-sector exposures while attempting to mitigate unintentional commodity or factor bets when appropriate.
Our portfolio is constructed based on rigorous research and due diligence. Our investment process is designed to identify energy and energy-related companies with low underlying business risk, the ability to maintain consistent and growing distributions, and attractive total return potential. Our primary tool for detecting such investments is our scenario analysis process through which we test the partnership’s ability to withstand various commodity price, volume and interest rate environments. We believe that focusing on these attributes will allow us to provide favorable long-term performance.