These are challenging times for most independent oil and gas producers. Traditional competitive concerns are complicated by legislative and regulatory uncertainty, while difficult economic conditions have tightened access to operating capital for some companies.
Strong, smart, strategically minded producers have weathered the storm, but even the best independent O&G businesses remain focused on the cash flow and tax liability issues that directly weigh on their future success.
The good news: amidst the chaos and uncertainty, there are proven value-generation solutions that the independent producer can put into play today.
This was the message last Thursday at the Independent Producer Value Capture Workshop, which was held at the Petroleum Club of San Antonio. This focused 2½-hour seminar was led by three O&G industry-leading services firms with deep roots in the O&G business and will address strategies with powerful, demonstrated benefit for the independent producer.
- Grant Farris, VP of Producer Services for CIMA Energy, detailed current best practices in O&G marketing for independent producers. His illustrated case study demonstrating how a nine-mile pipeline could be significantly more cost-effective than a three-mile line made clear the importance of involving marketing experts in the strategic planning process.
- Mike Corley, Principal and Founder of EnRisk Partners, walked the audience through some of the nuances of hedging, discussing the tools that are of the greatest value for independent producers.
- Dan Belger, Accruit's VP of Sales, explained the value of 1031 like-kind exchanges in transforming tax liability into working cash flow, with significant attention to the what's and how-to's associated with conducting like-kind exchanges in the O&G industry.
The event was attended by representatives from some of the region's finest independent producers, and the response was enthusiastic, with one attendee asking "are there going to be more of these? I know some other companies that need to hear what you guys are saying."
The better news: there are going to be more. San Antonio was the first stop in a road show series that's going to make stops in several markets around Texas and Louisiana in the coming months. If you'd like to know more, or to ask questions in advance, please contact us at 866.397.1031 or click here and I'll see to it that you get the answers and resources you need. I can also get you on our mailing list so you're informed when we're coming to your town.
Thanks to those who braved the heavy weather in San Antonio, and we look forward to seeing the rest of you at an upcoming workshop.