May. 14 at 6:05 PM
$TXO 💡 Bottom Line:
TXO is acquiring:
25 million BOE of proven production
But in a field with billions of barrels in place
On 190,000 productive acres, which may hold dozens or hundreds of drilling locations
This means they’re likely paying for current cash flow and proved barrels but expecting significant upside from:
Reserve additions (through development drilling and improved recovery)
Reclassification of resources to reserves as they drill or prices rise
So yes, they very likely believe they are getting more future reserves than they are paying for today.