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

https://youtu.be/qUicm4Wu3gY

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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