The energy industry is historically cyclical, and following one of the fastest run-ups of prices in recent memory, today we find ourselves in a very familiar place. We seldom linger in boom times but when they occur, everyone wants in, and those that have been in find themselves having a big payday. Escalating oil and gas prices translate into BIG RETURNS. Plummeting prices translate into BIG OPPORTUNITIES.
Does anyone ever get into a business deal at exactly the right time? Seldom is timing perfect, but at Texas Royalty, we see an opportunity in the near future to take advantage of another downturn in the oil business.
Companies throughout the oil patch have been spending money at a rapid rate, reinvesting revenue generated from the oil and gas they have bought and discovered over the past few years. Those revenues have decreased to a level that has caused nearly every oil company in America to downsize their budget and readjust their capital expenditures.
What do these companies do with their non-core properties when budgets have been cut? They sell them. What do they do with leases that are expiring when the funds are no longer available for acquiring leasehold? They don’t renew them. What do they do when they don’t have revenue sufficient to develop their core properties? They divest themselves of properties, leasehold and equipment allowing them to their core assets.
Texas Royalty Corp is positioned to acquire oil and gas assets that are available at a discount relative to their intrinsic market value. Slowdowns in the oil and gas business provide a tremendous opportunity for companies with the vision, expertise, means, and willingness to look to the future. We will:
- Diligently acquire property and production while others need to sell,
- Drill and discover when drilling and equipment costs are the lowest, and
- Position ourselves to profit substantially when prices rebound.
While oil and gas investments can be risky, you can mitigate some of that risk by choosing your partner carefully. Texas Royalty has been exploring and producing in East Texas for almost twenty-five years. Focusing in one specific region has allowed us to develop expertise in analyzing the geologic merit of a project or area; this is invaluable experience, since each geologic area presents its own challenges and nuances.
PLEASE NOTE: THERE ARE SIGNIFICANT RISKS ASSOCIATED WITH INVESTING IN OIL AND GAS VENTURES. THIS IS NOT A SOLICITATION TO BUY OR AN OFFER TO SELL ANY SECURITIES.