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Noble Royalties, Inc. Sellers and Investors. The Balanced World of Royalties. Presentation to IPAA Private Capital Conference | April 19, 2004. The Balanced World of Private Royalties. Acquiring royalties benefits both sellers and our equity partners.
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Noble Royalties, Inc. Sellers and Investors. The Balanced World of Royalties. Presentation to IPAA Private Capital Conference | April 19, 2004
The Balanced World of Private Royalties. Acquiring royalties benefits both sellers and our equity partners. – Provides sellers cash at premium valuation so they can sieze their current opportunities – Provides a simple and solid alternative for our equity partners
The Private Royalty Purchase business is heating up. – Transactions averaged less than $100 million per year from 1998 to 2003 – Q1 2004: $300 million in purchases have been announced – EOY 2004: $1 billion + will be in the works
Why the Explosion in Activity? Value. Royalties answer a need…whichever side you’re on. – Sellers are receiving value: – historically 48x monthly cash – pushing 72x in today’s market – Equity Partners are receiving value: – historically consistent growth-driven returns ~~
A Balanced Approach to Royalties Acquisition and Management. Noble Royalties delivers value to both parties. – In business to address the needs of sellers and investors – satisfies the needs of multiple players involved before and after the deal – Noble pays SELLERS competitive market prices for oil and gas royalties – Noble takes care of INVESTORS by delivering consistently higher returns
Sellers’ Value: Facilitating Opportunities. Increased commodity prices and royalty multiples allow companies to better allocate funds to: – Finance development for core interest areas – Get rid of “high-maintenance” assets – Pay down debt – Take advantage of Capital Gains Tax/Section 1031 Exchanges
Investors’ Value: Above Average Returns. A well balanced, hand-picked producing portfolio will: – Out-perform traditional investment vehicles – Provide opportunities for growth – Create consistent returns over the long haul
Noble Royalties: Consistent, Proven Growth Model. Noble Royalties production from acquired wells: Recent Acquisitions: $30.3 Million {April 1, 2004} $5.4 Million {March 1, 2004} $21.5 Million {Jan. 6, 2004}
Noble Royalties. • Noble Royalties is a company you want to do business with––whether you’re a seller or an investor. • – Currently at $140 million and growing rapidly • – Staff of 11 experienced oil & gas professionals • – Track-record has earned access to larger equity partners • – Quick to close • – we come prepared; we never renegotiate • – we close on time • – we have completed 42 deals in seven years • – We take care of our equity partners by delivering • consistent high returns
Noble Royalties: Talk to Us. If you’d like more information on working withNoble Royalties, contact us today. Scott Noble President/CEO Noble Royalties, Inc. 13601 Preston Road, Suite 1008-West Dallas, Texas 75240 972-720-1888 972-720-1899 (fax) snoble@nobleroyalties.com Noble Royalties, Inc.