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Fueling the oil and gas industry

Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The corporate group consists of the reinsurance and ERGO business segments, together with the capital investment company, MEAG. The Group operates in all lines of insurance. Ever since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its particularly sound financial position. It also offers its clients financial protection when faced with extraordinarily high levels of damage – from the 1906 earthquake in San Francisco right through to the series of Atlantic hurricanes that occurred in 2017. Munich Re possesses outstanding innovative strength, which enables it to also provide cover for extraordinary risks such as rocket launches, renewable energies, cyber attacks or pandemics. The company is playing a key role in driving forward the digital transformation within its industry and in doing so is increasing its ability to assess risks and expanding upon the range of services that it offers. Its tailor-made solutions and close proximity to its clients make Munich Re one of the world’s most sought-after risk partners for the economy, institutions and private individuals.

Alternative debt financing for upstream oil and gas

Munich Re Reserve Risk Financing, Inc.

We are a Houston, Texas based, wholly-owned subsidiary of Munich Re. Munich Re, a AA- rated global insurance company operating across all risk lines, provides billions of dollars in underwriting commitments for energy-related risks and direct investments in energy infrastructure.

Munich Re Reserve Risk Financing, Inc. ("MRRF") provides a unitranche alternative to combinations of bank RBL and junior/mezzanine debt that is:
  • non-dilutive;
  • fixed-rate; with
  • no borrowing base redeterminations.
We target established middle market upstream operators seeking to:
  • accelerate production growth through conversion of PNP/PUD reserves;
  • increase reserves/production through strategic asset acquisitions; and/or
  • rationalize capital structures.
  • Non-dilutive, fixed-rate, senior secured, fully amortizing term loans
  • Loan sizes from $50 to $250 million
  • Loan tenors up to 7 years
  • OID of 1.0% to 2.0%
  • Fixed-price, fully-amortizing structure eliminates refinancing risk
  • Total cost embedded in up-front fees plus fixed coupon – no equity “kickers”
  • Recourse limited to subject properties and specific contractual undertakings of sponsor
  • Munich Re credit enhancement supports term hedging of commodity prices at advantaged rates
  • Multi-billion dollar balance sheet provides substantial capacity to fund ongoing capital needs
  • Subject properties located in North America
  • Subject properties can include up to 50% PNP/PUD reserves provided that:
            - Acceptable plan of development agreed as precondition to funding
            - Capital sufficient to fund the plan is available and earmarked
            - Development costs capped via turnkey with sponsor or acceptable third parties
  • Subject properties to be “ring-fenced” via sponsor-owned SPV as borrower or VPP/Prepay/other acceptable form of conveyance relating specifically to the subject properties
  • Experienced management with track record of creating value in target asset area/basin
  • Hedging of associated commodity price risk

Do you have questions?

Justin Moers                      

Phone: +1 (281) 203 5944

Chad Mabry

Phone: +1 (832) 592 0085

Office Locations

1790 Hughes Landing Blvd # 275,       
The Woodlands,                                        
Texas 77380, USA                               

Königinstr. 107
80802 München
Germany

Munich Re Experts
George Carrick
President of MRRF
Phone
+1 (832) 592-0075
E-Mail
george.carrick@mrtl.com
Justin Moers
Managing Director
Phone
+1 (281) 203 5944
E-Mail
justin.moers@mrtl.com
Chad Mabry
Vice President
Phone
+1 (832) 592-0085
E-Mail
chad.mabry@mrtl.com
John Reichardt
Technical Underwriter
Phone
+1 (281) 203-5923
E-Mail
john.reichardt@mrtl.com
Jacob Gilreath
Petroleum Engineer
Phone
+1 (281) 203-5943
E-Mail
jacob.gilreath@mrtl.com
Thanassis Tjavaras, PhD
Financial Underwriter
Phone
+1 (832) 592 0067
E-Mail
thanassis.tjavaras@mrtl.com
JannaLyn Allen
Chief Legal Officer of MRRF
Phone
+1 (281) 203-5928
E-Mail
jannalyn.allen@mrtl.com
Jürgen Goldstein
Chief Operating Officer of MRRF
Phone
+49 (89) 3891-3699
E-Mail
jgoldstein@munichre.com
Marcus Weber
Portfolio Manager
Phone
+49 (89) 3891-6682
E-Mail
mweber@munichre.com
Matthias Tönnis
Matthias Tönnis
Technical Underwriter, Geologist
Laurence Schultz
Legal Officer
Phone
+49 (89) 3891-9289
E-Mail
lschultz@munichre.com
Dr. Christian Merz
Financial Underwriter
Phone
+49 (89) 3891-8575
E-Mail
cmerz@munichre.com