For the past couple of years, the challenge for E&P companies has been existing in the oil and gas industry in the first place. Investors have demanded increased free cash flow with just enough capital to keep up production. Even a rumor of overspending or, worse, an acquisition, causes Wall Street energy traders to have a collective panic attack.
So it’s with a certain stubbornness—and optimism—that start-ups and entrepreneurs endure. In the Permian, Anadarko and Williston basins, a new wave of young companies headed by savvy CEOs has emerged. Private-equity-backed teams, such as Birch Resources, continue to push through the brambles of a prickly market in search of the improbable: a way to consistently make money.
Common among many of them is the realization that the drill and flip model is over. Instead, the companies are in it for the long haul. Oil and Gas Investor interviewed the CEOs of three companies—Birch Resources, Ventana Exploration and Production and Western Natural Resources—each focused on different models in different basins.