All of Haymaker’s evaluation work is designed to reach an offering price that is significantly higher than market value in our buy areas. We value our time and yours, so we only contact mineral owners in areas where we know we can pay a premium. Haymaker has many advantages over smaller mineral companies that allow us to pay the best price:
• Flexibility of Capital: Haymaker is funded by two large and diversified private equity groups that have different pools of capital. One pool may be very bullish on Marcellus gas, while another pool of capital may pay a premium to aggregate undeveloped Permian oil acreage. Haymaker is uniquely positioned to choose which pool of capital can make the strongest offer to each mineral owner.
• Technical Expertise: Haymaker staff includes petroleum engineers that have experience studying reservoirs around the country. We target acquisitions where our engineers are more optimistic than the rest of the industry.
• Industry Relationships: Haymaker has developed strategic relationships with many oil and gas operators. We can pay more in areas where we believe these operators will eventually become more active.
• In-House Land: Haymaker has an in-house land staff and does not use third-party brokers to make acquisitions. Our land team is professional and courteous, and realizes that our reputation is on the line with every acquisition. We do what we say, and we close on time.
• Focused Approach: Haymaker has very small buy areas, sometimes just a few sections within a county. We place dedicated capital in these areas, and then move on to other areas to maintain our diversification. We only buy in areas where we know we can pay more than the competition.
• Premium Valuations: Haymaker’s technical expertise and industry relationships allow us to see enhanced value and pay a premium where other mineral buyers cannot. Our ability to pay premium value has allowed Haymaker to transact with some of the country’s largest mineral owners, closing over 400 deals to date.