Funding Unconventional-Resource Acquisitions Today

Land deals are often funded from cash flow or existing credit facilities-two capital resources that are constrained today. Built-up cash powder and stock-for-stock merger are mostly the means of acquiring entry or expansion in an unconventional-resource play now. Here's why.

Today's capital markets expect higher returns: 20% is the new 10%. Risk tolerance is lower. PUDs are fine, if they are free. The primary focus is to buy at distressed prices and pay little for upside.

Factors contributing to volatility are LNG, wind power and high-deliverability shale wells. Learn to use volatility to your advantage: Be more flexible than the competition.

To thrive, compete for capital, read the mood and adjust, be prepared for volatility and know the attractions of unconventional plays from a capital provider's view.

Featuring:

• M. Lynn Bass, GasRock Capital LLC

Total Length: 00:17:20

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