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

1 year ago
6

This is the second part of the Matador in Eddy County Deal Evaluation.

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.

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