STRATEGY
STRATEGY
IEP is an energy company that acquires and develops unconventional and CO₂/waterflood assets. The company has a proven track record of success in the development and operation of these types of assets. IEP targets reservoirs that exhibit long life, low operating costs, and good predictability with respect to throughput and reserve quality. We will utilize innovative completions by designing longer laterals and larger sand proppant volumes where it makes sense financially. Will utilize advanced completion techniques in certain areas. The company prefers to identify and enter into negotiated transactions that are amenable to the seller prior to assets being marketed. IEP identifies and acquires assets with quality reserves that can increase valuations by cash flow multiples. IEP integrates past acquisition valuation data to make competitive offers for assets in the most prolific areas.
The larger volumes of gas produced by shale operators will require significantly greater midstream infrastructure. Investors must build these facilities with carbon capture technology in the process. IEP will utilize a gas storage database created over 15 years to understand the future flows of gas and the feasibility of commercial injection sites used for gas storage across the United States. The database is useful for understanding the dynamics of gas storage for commercial-size reservoirs in the US. It takes into account many factors that include geological criteria, distance, volumes, emissions, quality and surface/regulatory requirements.
A large amount of midstream infrastructure was built during the shale boom, causing many equity holders to look to cash out. Large amounts of capital have been deployed and many other key projects are near completion. The development of more midstream projects and infrastructure projects will be needed to store and transport new gas volumes into LNG facilities. Larger volumes of gas will need to be produced to meet demand as more coal-fired plants worldwide are scheduled to be shut down. The US alone has 200 coal-fired plants. We believe there is a greater need for collaboration between upstream and midstream companies for a smooth energy transition. IEP plans to help meet the demand for additional capacity and deliverability.
There is a large demand for additional hydrogen infrastructure that will be needed for the energy transition. Power efficiencies are realized by injecting hydrogen at certain points in the midstream along with ammonia. IEP is looking for the right partner to implement a high-volume blue hydrogen project in the GOM.
