Deal Spotlight – Episode 3 – A Minerals Deal Evaluation: A Comprehensive Guide and Live Analysis – LaCava County, Baytex wells, and are they worth the asking price?

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.

https://welldatabase.com/

https://combocurve.com/

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.

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About Stu Turley 4195 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.