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