Trace Capital Management

Last week, we traded slide decks and Zoom calls for hard hats and FRC in the Permian Basin. We brought a group of partners to Midland to see the engine room of American energy up close, touring Canes Midstream's gathering and processing operations, walking a working drilling rig, and spending time with the teams that keep it all moving. The day closed with dinner and candid conversation with one of our talented management teams. In a single day, we got a firsthand look at several of the areas where Trace invests across the energy value chain: midstream infrastructure, upstream drilling, and minerals and non-operated working interests among them. Energy is a technical and operationally complex asset class, and we think one of the best ways to understand what drives returns is to see it directly. We are proud to be part of this industry and to share the tangible, real-world opportunities it offers with our partners.

Trace Capital is excited to share that our Partner, Geer Blalock, has joined the Executive Council of the Kay Bailey Hutchison Energy Center at UT Austin, supporting students and the next generation of energy leaders.

Trace Capital will be attending the Women’s Private Equity Summit next week, which brings together influential women across the private equity landscape to discuss market trends, capital formation, and the evolving opportunities ahead. Our team member Andrea Kathol will be on site - reach out if you’d like to connect during the event.

Trace Capital is headed to PEI NEXUS Orlando, Feb. 22–25, and we’re looking forward to an impactful week. Geer Blalock and Andrea Kathol will be onsite – reach out if you’d like to connect at the event.

Trace Capital team members Anil Pillai and Andrea Kathol will be attending iConnections Global Alts Miami February 23-26, 2026. We look forward to connecting with LPs and industry peers at the event.

Earlier this month, we stepped away from the day-to-day to focus on what matters most: our people.   No agendas. Just good food, fresh air, and time to reconnect. As Thanksgiving approaches, we’re reminded how thankful we are for the energy, dedication, and camaraderie this team brings every day.   Trace Capital wishes everyone a happy Thanksgiving, filled with gratitude and connection!

On the Ground with Sabre Energy🚧🛢️   Trace Capital Director Zack Belski recently visited the active drilling operations of our portfolio company, Sabre Energy, further deepening our understanding of the team’s execution and the assets driving performance.   Direct engagement with our management team partners and visibility into active development are key to how Trace builds conviction. These touchpoints strengthen our understanding of the operational drivers behind performance and help us support our partners with clarity and confidence.   We’re proud to back Sabre and excited about the momentum ahead!

This week, Trace Capital hosted our 2025 Annual General Meeting in our home of Houston, TX. Thank you to everyone who joined us! We’re grateful for your continued support and partnership, and excited about what’s ahead. Trace Capital 2025 AGM Highlights: 🔸A Strong Year in a Shifting Market Despite volatility, Trace stayed focused on long-term energy themes and continued to build with conviction. 🔸Portfolio Momentum Our portfolio companies are performing well across the board – growing organically and through acquisitions while generating high rates of free cash flow. 🔸Opportunity in Uncertainty We believe recent market volatility is creating attractive entry points for our investment program. 🔸Looking Ahead With a strong foundation and clear strategy, we believe Trace is well-positioned to continue to generate asymmetric returns amid the energy mega-theme that will define the decade(s) to come.

We recently celebrated Trace Capital’s third anniversary.   Over these past three years, we’ve built an upstream and midstream-focused investment firm grounded in sponsoring enterprising partners to build businesses and assets with real edge – backed by rigorous technical underwriting and deep sector expertise.   We’ve accomplished a lot, grown even more, and learned plenty along the way. We are proud of the investment program we’ve built and are laser-focused on delivering great results for our clients and partners.   Energy is an exciting place right now, and we’re excited about what’s ahead. A big thank you to our investors, management team partners, and the broader community that has supported us so far on this journey.   Here’s to many more Trace birthdays!

We had the pleasure of co-hosting a dinner in the Hamptons with our friends at PRAGMA and Breakwall Capital, welcoming a wonderful group of investors for an evening of connection and conversation.   Titled “Opportunities for Family Offices Across the Oil & Gas and Energy Landscape,” the night was all about sharing ideas, building relationships, and exploring how to unlock opportunities in today’s energy market. We believe Trace’s approach to upstream and midstream investing is a powerful way to access today’s energy mega-theme.   We’re grateful to everyone who joined us. Your curiosity, insights, and energy made the evening truly special.