Sector: Energy | Focus: Oil & Gas Exploration & Production
HQ: Midland, Texas
Financial Risks
The company faces risks from volatile oil, natural gas, and natural gas liquid prices, influenced by global events (e.g., wars, inflation, supply chain disruptions). Production delays, regulatory changes (e.g., water restrictions), and reserve/production level uncertainties are also significant risks. Credit risk from customer/counterparty defaults is a concern, especially with high receivables. Interest rate fluctuations and potential impairment charges on assets are additional risks.
Financial Upside
The Endeavor Acquisition, along with other acquisitions, presents potential for increased production, revenue, and reserves. The company aims for lower costs and a differentiated value proposition for stockholders. The WTG Midstream Transaction and other divestitures generate gains. A share repurchase program and dividend payments are planned, potentially returning capital to shareholders.
