Interesting interview on CNBC
This guy invested $1000, leveraged it to buy a $1.2m company when oil was $11 in 1985. 20 years later he sold that company for $20b and it has since tripled. He says with todays depressed prices, we'll probably never see current opportunities again in our life time. He says good money can be made in the Eagle Ford & the Permian at current prices, but you have to be very selective with mainly smaller deals. Bigger billion dollar deals have not come down in price as much as the smaller deals he's looking at.
Sounds a bit like our Eagle Ford purchases, the cheapest undeveloped EF acreage deal I've been able to find is around $5000/acre, most are higher. When you look at the projected returns 13,000 acres can give, I have to wonder if a few more smaller deals like this would be better than a more dilutive bigger acquisition. Having said that, I'm sure the management team are onto it, they seem to be very adaptive to changing dynamics.
