Sign in to follow this  
Followers 0
KH

Arm Wrestling with the Big Guys... Can Smaller E&Ps Compete?

Recommended Posts

A fundamental evolution in the American oil and gas industry continues to impress the world despite the inherent volatility of commodity prices and geopolitics.  Capital providers in all shapes have amassed capital that has been utilized for land, E&P and mid stream assets.  This capital affects OPEC, U.S. government decisions, NYMEX prices and U.S. export volumes.

Whether these financial institutions provide private equity, second tier debt, mezzanine structures or joint venture capital, the choices are broad for the oil companies as they offer their wares.  A consistent theme is that the returns are there if the correct partnerships and aligned interests revolve around the right deal structure.  Undeveloped acreage in resources plays has become the currency of the realm by which to create value, either for growing production to prove up the play  or readying it for sale to a different E&P.  As we all know, the devils in the details....

What of the smaller E&P company?  Not everyone can approach and be serviced by this seemingly endless river of cash.  Most companies we see are great candidates for funding, but don't have the pedigree and the corresponding zeros on the end of their capital requirements.  One thing they DO have in common is existing production.

As stated before, the contention to be able to leverage this production, having it paid forward and having the capital accessible in a short time can't be overlooked.  As proponents of Volumetric Production Payments, (VPPs), our capital can be deployed quickly and the producer can use the monies to increase and improve their production. 

Our range of opportunities have expanded into new plays and overlooked basins.  We see new, 'older' players step up and we're looking for savvy operators who are pursuing growth and returns.  We don't have a magic bullet, but we have the capital for these solid companies, ready to deploy.  Where there's a will, there's a way... Always open for business!  

 

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

What kind of sums are we talking about here Blackline? 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  
Followers 0