Deal Spotlight Episode 1 Part 2 – The guys cover the Eddy County and Matador in the Wolfcamp A.

This is the second part of the Matador in Eddy County Deal Evaluation. If you missed Part 1, you can check it out here: Deal Spotlight Episode 1 Part 1 – The guys cover the Eddy County and Matador in the Wolfcamp A. Got Questions on oil and gas investment evaluations.

Because of the enormous requests from investors evaluating oil and gas, we are starting a new series showing people how to assess oil and gas M&A or invest. Accredited investors, family offices, and E&P operators are our largest market, asking for these evaluation pieces of training.

We want your feedback and recommendations for deals.

Reach out to Stu and Michael at https://energynewsbeat.co/ to get your deal reviewed.

 

Highlights of the Podcast

 

00:20 – Divided into two parts, focusing on the Matador deal.

00:45 – Explanation of setting up a new type curve for Wolfcamp A.

01:08 – Understanding production curves normalized to time zero.

09:15 – Discussion on the distribution of EURs (P10, P50, P90).

14:21 – Incorporating strip pricing and natural gas liquids (NGL) data.

16:37 – Creating individual forecasts for specific wells.

19:30 – Incorporating production taxes and ownership interests.

20:47 – Analyze cash flows and calculate the internal rate of return (IRR).

22:02 – Determining the potential acquisition cost and assessing deal value.

A shout-out to our sponsors! WellDatabase and ComboCurve.

*We do not offer investment advice; you must contact your tax professional to get the appropriate tax information for your investments. This is only for educational purposes.

About Stu Turley 3278 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.