67 WALL STREET, New York - January 15, 2013 - The Wall Street Transcript has just published its Oil & Gas: Refining, Independent and Major Integrated Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Capital Expenditures and Consolidation Activity - Refining Crude Price Differentials - Frontier Exploration and Development - Shale Drilling Capital Expenditures - Oil and Gas Price Divergence - Oil Price Expectations - LNG Global Pricing Differentials
Companies include: Fieldpoint Petroleum Corp. (FPP), Cimarex (XEC)
In the following excerpt from the Oil & Gas: Refining, Independent and Major Integrated Report, the CEO of FieldPoint Petroleum discusses the outlook for his company for investors:
TWST: Your third-quarter revenue was up more than 30% compared to the same period in 2011. What factors contributed to that increase?
Mr. Reaves: We started our drilling program with Cimarex (XEC) in the Bone Spring play in Lee County in New Mexico. As a result of the success of those wells, it had a great impact on our Q1 revenues as well as our Q3 revenues, and we think that going forward that the new wells will have a solid impact on Q4 and year-end earnings.
TWST: What is your outlook for continued growth in 2013, and what indicators do you have you'll continue to grow?
Mr. Reaves: Specifically, we definitely will drill our third well sometime in the first half of 2013 with Cimarex, our third Bone Spring well. We're off to a great start with the first two wells, so we think there will be success there. Also, we're emphasizing acquisitions currently. We believe with the lower prices of commodities, oil and gas prices in particular, we think that this will be an opportunity to pull off an acquisition. So our strategy is to grow through the drill bit, but also with the focus on acquisitions over the next three to six months. We'd like to make an acquisition to continue that growth.
TWST: In your third-quarter press release, you mentioned building your production base partly through acquisition. Tell us about the acquisitions you've made in 2012.
Mr. Reaves: In terms of 2012 growth plans, with higher commodity prices that we had in the early part of 2012, our emphasis was to drill wells and with a strong focus on oil in particular. And so, that was the plan for 2012; 2013, once again, we're going to combine the two. We'd like to make an acquisition to augment our growth. Also, we'd like to drill more wells. Once again, we've got our third well in the Bone Spring with Cimarex in section 15. We also have adjacent acreage in section 14, and we will start to evaluate Section 14 in mid-to-late 2013 as well.
TWST: In which geographic regions and what kinds of acquisitions do you hope to focus on in 2013?
Mr. Reaves: We're opportunity driven right now. We don't have a specific area, but obviously we like the Permian Basin, and we like the midcontinent. Those two areas will probably be a strong emphasis for us. But as we see opportunities in natural gas, for example, with the depressed prices of gas, we think at some point natural gas has to turn the corner on pricing. This may be a good time to pick up a natural gas play. And we're going to definitely evaluate every opportunity with oil, but we're also going to look at natural gas with a keen eye.
TWST: What's the regulatory environment like for you at the moment? And which regulatory issues do you think will present the greatest challenges in 2013?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.