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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)
Noble Royalties, Inc.
