- Development Agreements: 500,000 gross acres secured with Revenant and Caturus Energy for future production.
- Acquisition Program: $240M invested since 2023 in Shelby Trough and Haynesville expansion acreage.
- 2025 Production: Ended year at 32,000 BOE/day, with significant 2026 growth expected from new agreements.
- Q4 Financials: Net income of $72.2M and adjusted EBITDA of $76.7M, with 1.05x distribution coverage.
Operational Highlights
The company achieved significant commercial milestones in 2025, including development agreements with Revenant Energy and Caturus Energy, which placed approximately 500,000 gross acres into development. The acquisition program remains on track, with $240 million invested since launching in '23 to add accretive mineral and royalty acreage across the Shelby Trough and Haynesville expansion area. Production ended 2025 at 32,000 BOE per day, with expectations of material growth throughout 2026, driven by new development agreements and high-interest developments in the Permian Basin.
Growth Prospects
The company is confident in its ability to fund its distribution and grow throughout the year based on its development agreements and minimum commitments. Strong hedges are in place for natural gas throughout the year, and the company's significant assets near Gulf Coast LNG facilities position it to benefit from the substantial call on gas supply. As stated by the company, "We're excited about the growing demand for natural gas and our significant assets near Gulf Coast LNG facilities position us to benefit from the substantial call on gas supply."
Valuation
With a P/E Ratio of 10.76 and an EV/EBITDA of 10.78, the company's valuation appears reasonable. The Dividend Yield stands at 8.37%, which is attractive for income-seeking investors. The ROE of 29.11% and ROIC of 19.89% indicate strong profitability. The Net Debt / EBITDA ratio is -0.0, suggesting a healthy debt position. Overall, the valuation metrics suggest that the company's growth prospects are reasonably priced in.