Permian Basin Yield Fund II

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Sponsor: ACME Energy Partners|Asset Class: Energy / Oil & Gas

Target IRR

16.5%

High Confidence

Cash Yield

8.2%

Annual distribution

Multiple

2.1x

MOIC over 7 years

Interactive IRR Sensitivity Analysis

Adjust market factors to see real-time impact on projected returns

Projected IRR

16.5%

+0.0% from base case

Base Case: 16.5%

Oil Spot PriceBeta: +0.82

$75/barrel

$40Base: $75$120

Inflation (CPI)Beta: +0.65

3.0%

0%Base: 3.0%8%

Interest RatesBeta: -0.35

5.0%

1%Base: 5.0%10%

IRR Probability Distribution

Expected return range with 80% confidence interval (12% - 22%)

Risk Factor Exposure (Betas)

Correlation to major market factors (-1.0 to +1.0)

Scenario Analysis

Projected returns under different market conditions

Bear CasePessimistic

IRR

11.2%

MOIC

1.6x

Cash Yield

5.8%

Base CaseMost Likely

IRR

16.5%

MOIC

2.1x

Cash Yield

8.2%

Bull CaseOptimistic

IRR

23.8%

MOIC

2.9x

Cash Yield

11.5%

DealDx Summary

AI-generated risk/reward profile analysis

The Permian Basin Yield Fund II presents a compelling risk-adjusted return profile with a target IRR of 16.5% and strong cash yield characteristics. The fund's royalty-focused structure provides downside protection while maintaining upside exposure to energy prices.

Market correlations show strong positive beta to oil prices (0.82) and inflation (0.65), making this an effective inflation hedge. The negative correlation to interest rates (-0.35) provides diversification benefits for fixed-income heavy portfolios.

Scenario analysis indicates resilient performance even in bear market conditions, with an 11.2% IRR floor supported by contracted revenue streams and low operating leverage.

Overall DealDx Grade

A-

Strong risk-adjusted returns with favorable diversification characteristics