Important positives
Today 12:21
Reminder - there are some important differences between TXP and other small EP companies about to ramp production.
1. Zero debt (really big item).
2. Wells are cheaper - no horizontals and fracking like shale wells
3. Wells are tapping conventional reservoirs in pressurized sands that will produce for many years, not peter off in 18 months like shale wells.
4. Guaranteed price for all the gas at very profitable rate. Upside potential for the liquids.
5. timing of cash flow ramp will easily cover all the costs of 2 rig drilling program. No need for dilutive equity raises or for any borrowing.
There are not many if any oil and gas companies at this stage of development that have all these positives.