You don't need to analyze a publicly traded O&G operator. There are loads of independents that do the exact same thing, including fracing, that the big boys do. It ain't rocket science anymore. Thanks to modern tracing techniques, directional drilling, $80+/bbl oil, dry holes are rare here in the Basin.
Use this as a ballpark, but it won't be far off:
$6M cash outlay "to the tanks"
100bbls oil daily
75bbls net to operator/producer
$7500 per day income, not including nat gas, so ballpark it at $8000 per day income
= $2,920,000 annually
2 year payout
There are just as many, and likely many more new wells making 300-2000 bbls/day than 100 bbls/day, but you guys do the math.
563 drilling rigs currently running here in the Permian.
They aren't stupid.
no no no all the oil is pulled out of the ground by big multinational companies, they control everything
