The Best Ever CRE Show JF 4144: How To Underwrite Oil And Gas Like A Pro ft. Bob Fraser
Jan 8, 2026
Join Bob Fraser, CFO and chief macro strategist at Aspen Funds, as he shares his extensive expertise in oil and gas investing. Bob breaks down the industry into upstream, midstream, and downstream sectors, emphasizing the risks associated with drilling. He explains why buying producing, non-operated working interests can mitigate these risks. Delve into tax intricacies like IDCs versus depletion allowances and uncover vital red flags in underwriting deals. Bob's insights on natural gas demand and the importance of hedging in volatile markets make this discussion a must-listen for investors!
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From Programmer To Alternative Investor
- Bob described his career path from computer scientist and dot‑com founder to trader and then alternative investor.
- He uses those experiences as a 'street MBA' to prefer private, control-oriented investments after losing money in public markets.
Three Segments And Risk Allocation
- Oil and gas split into upstream (production), midstream (transport), and downstream (terminals), and each behaves differently as an investment.
- Upstream carries the most visible risk but buying producing non-operated working interests removes geology and operator risk, leaving commodity risk.
Buy Producing Non‑Op Working Interests
- Avoid operator and geology risk by buying non-operated working interests in already-producing wells run by majors.
- That leaves commodity price risk but converts assets into predictable cashflow machines.
