Minerals Deal Evaluation: A Comprehensive Guide and Live Analysis
Michael and Stu take a look at a Minerals deal and analyze the asking price, and show how fast you can look at a minerals deal. A shout out to EnergyNet, an acquisition and divestment platform for the land energy industry. https://www.energynet.com/
We would also like to give a shoutout to our sponsors ComboCurve and WellDatabase for the Deal Spotlight as well.
Let us know if you agree with our assessment, and if you would like us to look at your deal, just reach out to us at questions@energynewsbeat.com
00:00 – New minerals deal evaluation template on GitHub, focusing on simplicity and key metrics. Guide on using Energy Net for informed valuation.
01:30 – Introduction to lot 114, Cattlemen Minerals, LaCava County, Texas. Seven Baytex-operated wells, monthly net revenue around $3,000. Emphasis on understanding production trends.
06:01 – Appreciation for Energy Net and CEO Chris Atherton. Anticipation of live minerals deal evaluations during NAPE, discussing potential intelligent well pads in the area.
07:56 – Use of Well Database and Combo Curve, synergy between tools, insights from an Oxy deal analysis, and refining forecasts using the proximity forecast feature.
11:00 – Explanation of proximity forecast in Combo Curve for refining production forecasts by selecting common wells and normalizing data.
16:47 – Value of detailed steps in mineral deal analysis. Humorous discussion on closing date and various parameters.
19:44 – Continued analysis, adjusting parameters like gas shrinkage, addressing taxes, emphasizing percentage conversion, and demonstrating the export process.
22:47 – Completion of cash flow analysis, highlighting small net volumes, emphasis on swift evaluation based on reserve price to decide whether to proceed.
