A Financial Advisor's Journey into Energy Entrepreneurship with Jordan Strebeck

Feb 20, 2024

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Episode 012: In this episode of Alternative Universe, Steve is joined by Jordan Strebeck, Managing Partner at Fortress Energy. Jordan is a proud West Texan, Red Raider, father, and husband. He studied agriculture, economics, and personal finance at Texas Tech University and later attended Harvard Business School on the Frisk Fellowship. Before co-founding Fortress, he was the Vice President of Finance & Business Development at Piedra Resources and Rock River Minerals, both long-time independent Permian Basin energy companies.

Jordan shares his journey in the oil and gas industry and how he found his passion for mineral and royalty interests. He discusses the importance of timing and the challenges and rewards of being an entrepreneur. Jordan also explains the concept of mineral and royalty interests and how his company navigated the market during the COVID-19 pandemic. With a focus on aligning incentives and building strong relationships, Fortress Energy continues to thrive in the alternative investment landscape.

Join us as we discuss:

[01:49] - How Jordan got into Harvard Business School.

[03:32] - Jordan's most memorable experiences in Boston.

[06:20] - The why and how of Jordan's move into financial services.

[13:12] - Jordan's life after Harvard Business School.

[17:43] - Jordan's motivation for building Fortress Energy.

[20:33] - The people who have helped Jordan in his career.

[22:07] - The importance of having a supportive spouse in entrepreneurship.

[26:17] - The joys and challenges of parenting four children in different stages of life.

[28:06] - Navigating the challenges of the energy industry during the pandemic.

[33:18] - Buying and owning mineral and royalty interests.

[38:46] - The structure of Fortress Energy's funds.

[43:19] - Jordan's bourbon collection.

Key Takeaways

Building a successful business requires timing, perseverance, and adapting to changing market conditions.
Mineral and royalty interests offer an asymmetry in a risk-return profile and provide opportunities for excess alpha without excess beta.
Investing in mineral interests provides the potential for a low-risk asset and the potential for both fixed-income-like characteristics and equity-like upside.
Family support and a strong sense of purpose can provide the emotional and psychological stability needed to navigate the challenges of entrepreneurship.

Quotes

"If we're not doing this so that people's lives can be changed, not just ours but our team's, we probably got our incentives a bit backward." ~ Jordan Strebeck

"Timing's everything. The timing of crashes in a commodity business is very important." ~ Jordan Strebeck

"From an entrepreneur standpoint, if your soul and your family are solid, then the stuff above it is no longer life or death. There's not a gun pointed at your head. And that's when you're going to function at your best." ~ Jordan Strebeck

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All content on this podcast is for informational purposes of a general nature only, and does not address any particular individual or investment. Nothing in this podcast constitutes accounting, legal, tax, financial or other professional advice. The discussion on this podcast of any entity, product or service does not imply an endorsement thereof, and the podcast participants may have a financial interest, whether through investment or otherwise, in one or more of any such entities, products or services. Please seek independent advice from a financial professional about your investment needs.