Replies to post #7980 on NGL Energy Partners LP (NGL)

[RyGuy]

Jugs...

I don't have private message capabilities so I wanted to ask you here. NGL is kinda dead on here at the moment anyway.

I wanted to get your opinion on Torchlight TRCH.

Fortunately for me I have gained back a good portion (about 2/3) of my losses from last year in TRCH... But I want your opinion since you have a lot of information on value in your head in the Permian basin I believe.

TRCH is NASDAQ listed and is selling their gas and oil rights in the Permian, and issuing a special dividend to TRCH shareholders from the pro rata share of the proceeds. Then TRCH will be merging with MetaMaterials. Even debt holders have agreed to convert debt to common stock.

https://ir.torchlightenergy.com/company-news/detail/696/metamaterial-and-torchlight-sign-definitive-agreement-for-business-combination

https://metamaterial.com/

But in terms of the special dividend, a geologist by the name of Rich Masterson has proved oil on their rights in the Orogrande, and they looking to sell the 134,000 acres. Torchlight supposedly is in talks with 6 or 7 purchasers for the rights.

Every $1,000 in acreage value will yield about $1 per share in special dividend it is assumed.

Looking at other past 3 months acquisitions or so, it seems like it bodes extremely well for the drilling rights valuations.

https://www.forbes.com/sites/davidblackmon/2020/12/21/permian-focused-fracking-consolidation-continues-with-diamondback-deals/?sh=ecdc8e25ea53
Diamondback Energy acquired -
Guidon: 32,500 Acres * $44,897 per acre
QEP: 49,000 Acres * $26,523 per acre

https://www.forbes.com/sites/davidblackmon/2020/10/19/conocophillips-doubles-down-on-the-permian-basin-and-fracking-with-concho-acquisition/?sh=304380528e8e
ConocoPhillips acquired -
Concho: 800,000 Acres * $10,471 per acre

I was thinking it would be more in line with this & slightly higher
https://www.businesswire.com/news/home/20201217006237/en/Earthstone-Energy-Announces-Significant-Midland-Basin-Acquisition
Earthstone Energy acquired -
Independence: 42,900 Acres * $4,336 per acre


Wondering what you think.