Ray Walker, COO Encino Energy LLC, sat down with Jessica Morales at the recent DUG East Conference and Exhibition in Pittsburgh to talk about the evolution of Encino Energy.

Last summer, Encino Energy unveiled the $2 billion-cash acquisition of all of Chesapeake Energy Corp.’s position in the Utica Shale of Ohio. Encino’s purchase, supported with funding from Canada Pension Plan Investment Board, included more than 900,000 net acres and roughly 900 producing wells in the Buckeye State.

The Chesapeake transaction closed late October 2018 and set Encino up to be more than twice the size of the next two to three acreage holders in Ohio, according to Walker. He estimates Encino has over 2,000 economic drilling locations and the company plans to focus on building a sustainable business over the next couple of years that generates free cash flow.

“It’s just so unique in today’s world that you have a private equity, almost an unlimited source of capital, that is not interested in flipping the deal,” he said. “They are more interested in just generating bigger and bigger business with better and better cash flow.”

Walker noted that Chesapeake Energy did a great job building a huge position in the Utica Shale that is allowing Encino Energy to take that asset and move forward. He also touched on his career with Range Resources and how his involvement with Encino first looked like it would be a consulting role.

__________________________________________________________________________________________________

RELATED:

DUG East: Key Players Eye Increased Production In Utica

__________________________________________________________________________________________________

Comments