Andrew Dittmar – MaA, Chapter 11, and decisions made with data
In this crazy world we politely call 2020, there is a pattern change in MaA, Chapter 11s, Royalties, and how investors operate. Taking the commodity price out of the picture, the balance sheet will make the difference on companies looking to restructure under Chapter 11, and then undergo the MaA after the re-organization. As Andrew and I catchup from our pre-covid meeting at last year's NAPE, we are reminded that nothing appears to be the same and data will be more important when making investment decisions. Royalties are one of the hottest assets in the market, and had one of the best quarters in 2019, and may still have some volume in this market towards the end of the year. The Appalachia had most of the MaA activity this year as there was more stability in the gas market. The Haynesville had almost no activity as it is well positioned with takeaway and location. Market looks to have some increases in MaA towards the rest of the year but will remain low unless there is a large commodity price change. Andrew thank you for stopping by, it was fun chatching up again. Hopefully we can visit at NAPE again in the future.
