Merit Energy Company

Merit Energy Company, LLC, established in 1989, specializes in providing portfolio management and administrative services to investment fund limited partnerships focused on direct investments in oil and gas assets. The firm's clients include institutions, fund of funds, family offices, and high net worth individuals. Merit offers discretionary advisory services, portfolio management, and administrative services to the Funds, making investment decisions on behalf of the Funds without requiring individual investor approval. The firm engages in over-the-counter derivative transactions for commodity price risk management. Merit charges management fees based on a percentage of assets under management and receives carried interest allocations from the Funds' profits. The firm emphasizes acquiring quality, producing oil and gas properties and employs hedging strategies to mitigate commodity price volatility. Clients are subject to minimum capital commitments and must meet suitability qualifications. Merit's investment strategy involves enhancing production, increasing reserves, and divesting assets when necessary. The firm discloses potential risks associated with oil and gas investments, including market volatility and operational risks. Merit acts as a fiduciary, with full discretion over investment activities. The firm's employees adhere to a Code of Ethics and are prohibited from using confidential information for personal benefit. Merit does not receive compensation for client referrals and maintains custody of the Funds' assets. Clients receive audited financial statements and reports.