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.
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*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.
