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.
Don't Let Tax Breaks Drive The Deal
- Don't let tax incentives drive the investment decision; IDCs only apply when drilling and can be overstated.
- Expect depletion allowance benefits (taxed on 85% of revenues) but not huge immediate write-offs unless you're funding drilling.
Vertical Wells Are High‑Risk Traps
- Vertical (single‑spot) wells carry high geology risk and often produce zeros if they miss the target.
- Horizontal wells are more expensive but spread geological risk and are far safer to underwrite.
