Our deep industry relationships with E&P operators and financial institutions enable us to source and forge creative, new commercial opportunities. KJ Energy implements a unique and adaptive Acquire & Exploit methodology to create and leverage asset value.



OPERATIONAL FOCUS

  • Onshore US mature assets – Stable, Low-Decline PDP Cash Flow with Meaningful Drilling Upside
  • Underperforming assets with upside running room potential
  • Lower lease operating costs through efficient field operations
  • Leverage our core competencies to increase and optimize current and shut-in production
  • Strategic infill drilling with proven well control and step out drilling of highly accretive, high-margin liquids-rich gas wells.
  • Build large 2P drilling inventory acreage position through efficient lease acquisition

Phase I:  Years 1-2.  ‘Operational Excellence’

  • Right Sized Asset.
  • Renegotiated Key Contracts.
  • Flattened Decline Curve (pre-drill).
  • Identified Overlooked PDNP and PUD, Targeting High ROI Behind Pipe Opportunities & Reserves. Conducted substantial G&G Work, Including MBS and Haynesville Coring/Logging.
  • Lowered LOE by 65%.
  • Assembled one of ETX’ most contiguous, liquids-rich footprints.

Phase II: ‘Highly Accretive Drilling’

  • Current 1-Rig Program – Economics >100% IRR’s
  • Introduced Best-in-Class D&C Technology
  • Drilled some of ETX’s Best Wells in ‘17 & ’18 (Profit, IRR, Reserves, Full-Cycle Costs)
  • Substantial, low-decline PDP with 10+ Yr. Drilling Inventory and >7 TCF Reserves
  • Focus: Liquids-Rich, High ROI Targets

VALUE-ADDED CAPITAL DISCRETION

  • Deploy capital to the highest return on investment (ROI) and overall asset value creation activities
  • Invest in low capital intensive projects that yield favorable ROI
  • Expediently return and maximize stakeholder’s cash

ADAPTIVE APPROACH TO CREATE AND LEVERAGE ASSET VALUE

  • Effectively utilize leverage to create maximum shareholder value
  • Maintain efficient financial structure
  • Structure working capital to enhance cash flow
  • Effectively utilize hedging to participate in a long-term commodity outlook

Focus areas