Acquisitions and Strategic Expansion
The IKAV and Sabinal acquisitions have been transformational, adding significant scale and diversification. These acquisitions are expected to be accretive to cash available for distribution by 8% in year 1, rising to 28% in year 5.
Strong Production and Revenue Metrics
For the quarter, production was 94,000 BOE per day, with 21% oil, 56% natural gas, and 23% NGLs. Total revenues, including hedges and midstream activities, totaled $273 million.
Efficient Capital Management
Projected capital expenditure for 2026 is expected to decrease by 8% without affecting production guidance. This reflects improved capital efficiency and strategic focus on gas projects.
High Cash Returns on Capital Invested
The company has maintained a cash return on capital invested of more than 30% per year over the past 5 years, with a distribution of $0.27 per unit in the third quarter.
Positive Outlook for Natural Gas Demand
Demand for natural gas is expected to increase, particularly due to LNG exports. This is anticipated to add 24 Bcf a day of demand between 2026 and 2030.