While others chase after quick profits and engage in the perilous and risky proposition of promoting and wildcatting, there are others who rely on acquiring steady production through acquisitions.
One such company is 3Point Oil & Gas Company. For its Chairman, CEO, and longtime oil and gas man Wes Welch, the business model of acquiring long-life, stable production has served his companies well through the years.
With over four decades in the oil and gas industry, Welch leads 3Point by looking for acquisitions of non-operated working interests with a solid reserve base, minimal decline rates, and upside potential, making their properties better suited to withstand the fluctuations of oil prices. Those acquisitions also optimize the value of the company by diversifying and maintaining a stable portfolio of acquisitions.
By focusing on conventional assets, 3Point mitigates the risk of operational profitability. "Every decision is made with the thought of creating shareholder value." Welch also points out, "Essentially, it's about investing in assets with steady production, low decline rates and operational upside, which can maximize returns over time."
3Point is focused on the potential for growth of the company, which maximizes shareholder value. "This approach is attractive to our investors who are interested in putting their money into the oil business because it is less risky than drilling wildcat wells and offers the potential for long-term profitability," Welch asserts. Using a line from a former mentor, Welch explains, "The best place to find oil is where it is already producing." If you think about that, it makes a lot of sense in this business.
While renewable resources like wind, solar, and hydroelectric are often positioned as a threat to the oil and gas industry, Welch doesn't see them as competitors. While there is a finite amount of oil and gas, Welch shares, "The oil and gas industry isn't going anywhere anytime soon. The fact is oil and gas resources are still necessary for everyday life."
The oil and gas industry has a reputation for quick gains and risky maneuvers, but 3Point Oil & Gas stands out for deviating from those business models, instead implementing a prudent, forward-thinking, profitable, and sustainable approach. Steering clear of the volatile "pump and dump" tactics, Welch and his team carefully select acquisitions that promise sustained value and benefit shareholders. By investing in assets with growth potential and implementing operational changes to enhance their value, 3Point offers investors the opportunity to sustain profitability and stability amidst an industry prone to dynamic fluctuations.
If you are considering an investment in the oil and gas industry or want to learn more about 3Point, please visit www.3pointoilandgas.com.
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