Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you help frame whether recent acquisitions continue to be focused on the Gulf Coast region? And how would you characterize the current EBITDA spread for mineral opportunities for both oil and gas? A: Our acquisition program is generally focused in the Gulf Coast region, particularly around expanding our Shelby Trough footprint. We are conservatively growing this footprint to take advantage of long-term opportunities. We are not actively looking at acquisitions in other basins at this time.
Q: Regarding the accelerated drilling agreements in the Louisiana Haynesville, how should we think about the duration of these agreements? Are they multiyear type agreements? A: These agreements are not generally multiyear like joint exploration agreements. They are more targeted opportunities based on interest concentration and resource location. While they add up significantly in aggregate, they are typically more limited in scope. We are intentional in seeking these opportunities to maintain predictability and consistency in production volumes.
Q: With the increasing activity in the Haynesville, do you think this will be reflected in the first half of 2025 or more in the back half of 2026? A: We are hopeful for a long cycle of modest to better-than-modest annual growth in activity around our properties, especially in the Shelby Trough. We see a long runway with significant additional activity for many years, contingent on natural gas prices. We are optimistic about growth from expanding development areas and operators.
Q: Can you provide context on the opportunities set for acquisitions and your comfort level with putting debt on the balance sheet? A: There is significant additional inventory available for purchase. We are taking a conservative approach, monitoring the natural gas market closely. While we have the capacity for more acquisitions, we aim to avoid becoming heavily leveraged, preferring a cautious expansion strategy.
Q: How does the constructive outlook for natural gas impact your calculus of executing additional accelerated development agreements (ADAs)? A: The constructive outlook for natural gas makes ADAs attractive as they provide near-term certainty and accelerated development. We continue to seek opportunities to maintain predictability in production, leveraging ADAs as a tool to influence activity without directly drilling wells.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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