This interview podcast episode features Ted Seides interviewing three managing directors from Lime Rock Capital about their remarkably successful investment in CrownRock, an oil and gas company. The discussion begins with the managing directors' backgrounds and Lime Rock's investment strategy, focusing on partnering with operationally excellent, focused companies. The core of the episode details the CrownRock investment, its initial thesis, the challenges faced (including three major market downturns), and the decision to hold the investment for 17 years, ultimately resulting in a 79x return. The interview concludes with reflections on the deal's success, lessons learned, and the firm's future outlook, highlighting the importance of long-term partnerships, operational efficiency, and a deep understanding of the industry. A key takeaway is the importance of a "forever hold" mindset, which allowed for strategic decisions that maximized long-term value despite short-term market volatility.
