Financial Evaluation

Learn • Explore • Be Empowered

TRP Minerals strives to empower every mineral owner with the best information so that they can make the best and most informed decision to create value from their minerals. Let us help you create lasting value today!

Generate Value Today

HOW WE EVALUATE FINANCIALS

After we have evaluated the location, lease, geology, and engineering of your minerals, the TRP Team will will create a stream of cash flows to determine the current appraised value.

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PDP

PDP

PUD

PUD

Strip Price

Strip Price

Cash Flow Modeling

Cash Flow Modeling

Type Curves for Current Production (PDP)

We generate Type Curves for each producing intervals of your producing wells create a production profile for your remaining reserves.

Investigate

Type Curves for Future Production (PUD)

We generate Type Curves for each future drilling location in every potential interval, creating a production profile for your future reserves.

 

research

Strip Price

The current contract price to acquire oil and gas in the future. Strip Price is used to model the value of future oil and gas production.

explore

Present Value and Cash Flow Modeling

A Type Curve is a projected production profile of a well based on downhole pressures, reservoir characteristics, and Analogous Well data. Simplistically, a Type Curve provides a prediction of what a well's performance can look like over a period of time.

Learn

TYPE CURVES FOR PDP AND PUDs

PDP Type Curves

The TRP team will generate a Type Curves for each productive interval for all of the producing wells associated with your minerals. Each type curve is specific to the producing well being evaluate that encompasses all analogous wells within a 2 mile radius to your minerals.

Evaluation

TRP's experts will create Type Curves for all all of the producing intervals of your current producing wells (PDP).

Financial

After our team has created an individual type curve for all of the productive intervals for each producing well, our team will begin to generate a stream of cash flows.

PUD Type Curves

The TRP team will generate a Type Curves for each productive interval for all of the future proved drilling locations associated with your minerals. Each type curve is specific to the producing well being evaluate that encompasses all analogous wells within a 2 mile radius to your minerals.

Evaluation

During the evaluation, we will establish the number of drilling locations your minerals will participate in based on geologic conditions and state regulations. We spend considerable time understanding the total number of potential drilling location.

It should be noted that in many cases where in-fill drilling occurs, the individual well performances are decrease as the number of wells are drilled. This occurs because the well bores that neighbor each other have a tendency to communicate with each other thus decreasing the total oil and gas that can be produced to one well bore.

Financial

After the number of locations are determined, the TRP team of experts will generate a stream of cash flows for each PUD and sum them together.

Create Value Today!

Mineral Location

Need a little help figuring out where your minerals are located? LEARN MORE

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GET A LUMP SUM OF CASH

We traditionally pay a lump sum of cash within 10 business days after you sign the purchase and sale agreement.

GET A FREE OFFER Today

STRIP PRICE

Strip Price

Strip Price is the current contract price to acquire oil and gas in the future. The NYMEX is the most common public benchmark used to buy or sell oil and gas futures.

Evaluation

TRP utilizes the NYMEX Strip Price for Oil and Natural Gas future pricing to generate a stream of cash flows for future production.

Financial

Commodity prices for oil and natural gas has historically been quite volatile. As one of the highest risks associated with the oil and gas market, industry lives and dies by the price of oil and natural gas.

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Where We Help Create Value

We focus on areas that we know best in order to provide the highest level of expertise.

Investigate Where we buy

PRESENT VALUE AND CASH FLOW MODELING

Cash Flow Modeling

After the TRP Team has evaluated your minerals (see list below), we will create a stream of cash flows that will determine the appraised value of your minerals.

  • Location of your minerals
  • Your Oil and Gas Lease(s)
  • The Geology
  • Type Curves generated for your PDP
  • Type Curves generated for your PDP
  • Number of Potential PUDs

Evaluation

With all of the Type Curves generated, our team will multiply the Net Revenue Interest (NRI) for each producing well (PDP) and each future well (PUD) by the corresponding production from the Type Curve. By multiplying the NRIs to the corresponding production, we can determine the net production you will be paid for on your royalty check.

After we calculate your net future production, our team will multiply the Strip Price to the corresponding month of production. This will create a stream of cash flows for each month till each producing well (PDP) and future well (PUDs) no longer produce oil and/or gas in commercial quantities.

Present Value

Present value (PV) is a concept that assumes that money is worth more today than it will in the future. Specifically, PV is the current value of a future stream of cash flows based on a Discount Rate.

Discount Rates can be viewed as a rate of perceived risk. The higher the Discount Rate or Risk the lower the Present Value of the future stream of cash flow will be.

The final step in the evaluation process is to apply the PV to the stream of cash flows and add them all together to get a final offer amount.

Risk Factors that increase the Discount Rate:

  • Location of your minerals
  • Your Oil and Gas Lease(s)
  • The Current Operator
  • Current Market Conditions
  • Regulations
  • Political risk and pressure

Create Value Today!

Mineral Location

Need a little help figuring out where your minerals are located? LEARN MORE

Uploading...
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Upload failed. Max size for files is 10 MB.
Thank you! Your submission has been received!
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LEARN.
EXPLORE.
BE EMPOWERED.
get a free offer

Financial Evaluation

Learn • Explore • Be Empowered

TRP Minerals II strives to empower every mineral owner with the best information so that they can make the best and most informed decision to create value from their minerals. Let us help you create lasting value today!

Generate Value Today

HOW WE EVALUATE FINANCIALS

The location of your minerals is the first thing the TRP Team will determine. We evaluate some basic variables relating to the location of your minerals to start the evaluation process.

1

PDP

Type Curves for Current Production (PDP)

We generate Type Curves for each producing intervals of your producing wells create a production profile for your remaining reserves.

2

PUD

Type Curves for Future Production (PUD)

We generate Type Curves for each future drilling location in every potential interval, creating a production profile for your future reserves.

3

Strip Price

Strip Price

The current contract price to acquire oil and gas in the future. Strip Price is used to model the value of future oil and gas production.

4

Cash Flow Modeling

Cash Flow Modeling

TRP will create a stream of cash flows for your PDP and PUDs to generate an offer price. Present value (PV) is the current value of a future stream of cash flows.

TYPE CURVES FOR PDP AND PUDs

PDP Type Curves

The TRP team will generate a Type Curves for each productive interval for all of the producing wells associated with your minerals. Each type curve is specific to the producing well being evaluate that encompasses all analogous wells within a 2 mile radius to your minerals.

Evaluation

TRP's experts will create Type Curves for all all of the producing intervals of your current producing wells (PDP).

Financial

After our team has created an individual type curve for all of the productive intervals for each producing well, our team will begin to generate a stream of cash flows.

PUD Type Curves

The TRP team will generate a Type Curves for each productive interval for all of the future proved drilling locations associated with your minerals. Each type curve is specific to the producing well being evaluate that encompasses all analogous wells within a 2 mile radius to your minerals.

Evaluation

During the evaluation, we will establish the number of drilling locations your minerals will participate in based on geologic conditions and state regulations. We spend considerable time understanding the total number of potential drilling location.

It should be noted that in many cases where in-fill drilling occurs, the individual well performances are decrease as the number of wells are drilled. This occurs because the well bores that neighbor each other have a tendency to communicate with each other thus decreasing the total oil and gas that can be produced to one well bore.

Financial

After the number of locations are determined, the TRP team of experts will generate a stream of cash flows for each PUD and sum them together.

LUMP SUM OF CASH

We traditionally pay a lump sum of cash within 10 business days after you sign the purchase and sale agreement.

STRIP PRICE

Strip Price

Strip Price is the current contract price to acquire oil and gas in the future. The NYMEX is the most common public benchmark used to buy or sell oil and gas futures.

Evaluation

TRP utilizes the NYMEX Strip Price for Oil and Natural Gas future pricing to generate a stream of cash flows for future production.

Financial

Commodity prices for oil and natural gas has historically been quite volatile. As one of the highest risks associated with the oil and gas market, industry lives and dies by the price of oil and natural gas.

WHERE WE HELP CREATE VALUE

We focus on areas that we know best in order to provide the highest level of expertise.

CASH FLOW MODELING AND PRESENT VALUE

Cash Flow Modeling

After the TRP Team has evaluated your minerals (see list below), we will create a stream of cash flows that will determine the appraised value of your minerals.

  • Location of your minerals
  • Your Oil and Gas Lease(s)
  • The Geology
  • Type Curves generated for your PDP
  • Type Curves generated for your PDP
  • Number of Potential PUDs

Evaluation

With all of the Type Curves generated, our team will multiply the Net Revenue Interest (NRI) for each producing well (PDP) and each future well (PUD) by the corresponding production from the Type Curve. By multiplying the NRIs to the corresponding production, we can determine the net production you will be paid for on your royalty check.

After we calculate your net future production, our team will multiply the Strip Price to the corresponding month of production. This will create a stream of cash flows for each month till each producing well (PDP) and future well (PUDs) no longer produce oil and/or gas in commercial quantities.

Present Value

Present value (PV) is a concept that assumes that money is worth more today than it will in the future. Specifically, PV is the current value of a future stream of cash flows based on a Discount Rate.

Discount Rates can be viewed as a rate of perceived risk. The higher the Discount Rate or Risk the lower the Present Value of the future stream of cash flow will be.

The final step in the evaluation process is to apply the PV to the stream of cash flows and add them all together to get a final offer amount.

Risk Factors that increase the Discount Rate:

  • Location of your minerals
  • Your Oil and Gas Lease(s)
  • The Current Operator
  • Current Market Conditions
  • Regulations
  • Political risk and pressure

REQUEST A FREE OFFER

Mineral Location

Need a little help figuring out where your minerals are located?
Learn More

Max file size 10MB.
Uploading...
fileuploaded.jpg
Upload failed. Max size for files is 10 MB.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
LEARN.
EXPLORE.
BE EMPOWERED.
get a free offer