My guest this week is Tim Pawul with the Mineral and Royalties Authority and host of the Minerals and Royalties Podcast. I’m excited to have Tim back on the show to give a minerals market update and to talk about how things have changed since the last time he was on in 2020.
If you missed my first interview with Tim, be sure to listen to Episode 69 to hear more about his background. I’m really excited to have Tim back on the show to talk about the current minerals market, where he’s seeing the most activity, and the types of buyers that are in this space now as compared to pre-COVID. Tim has a unique perspective on the high-level strategies and the larger players within the minerals and royalties space.
Tim is tied in to the minerals & royalties market through his interactions with minerals company CEOs, family offices, and private equity groups. The market has changed significantly over the past couple of years from oil and gas prices rising significantly, operators starting to drill again, but set against a backdrop of a global recession and a potential drop in demand for oil and gas. We’ve talked a lot about how mineral buyers underwrite deals and what their thoughts are on the market. I think you’ll really enjoy this one as a compliment to the actionable information that we provide on this show!
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About Tim Pawul
Tim grew up in Long Island New York and was recruited down to Rice University to play golf. Upon graduation in 2011, Tim earned a BA in Economics and Political Science. From 2011-2014, Tim ran the International Division of PLS Inc. where he focused on business development in Upstream Oil & Gas space. He later transitioned into a corporate development role at Oil & Gas Council overseeing their portfolio in Canada, US, Mexico, and South America. He started the Minerals & Royalties Authority LLC in 2021 where he now offers BD, Marketing, Capital Raising, and A&D consulting services.
We Discuss
- What has been your biggest takeaway from the past 2-years in the minerals and royalty space?
- How is the minerals market different now as compared to 2-years ago?
- What types of buyers and investors are still active in the space?
- Has there been a lot of consolidation on the minerals side similar to what we have seen with oil & gas operators over this time period?
- It is probably obvious to many of our listeners that oil & gas prices have recovered and surpassed pre-pandemic levels. How has the jump in commodity prices affected the minerals market this time around?
- What types of deals were in favor immediately post-COVID and what types of deals are mineral buyers looking for now?
- Despite the increase in commodity prices, my sense is that investors are a little more cautious this time around given the more measured pace of oil & gas development and the fact that the biggest lever on value of mineral rights is development timing, in other words, when a well gets drilled as we’ve mentioned on the show several times. Is this what you are hearing as well?
- Have you seen a change in the way mineral acquisitions are underwritten given the current uncertainty in the market?
Since you last were on the show, Joe Biden was elected president and there has been a lot of talk and some action towards limiting fossil fuel development.
- How are investors thinking about continued investment in fossil fuels given on one hand we are going to need oil & gas for the foreseeable future but on the other hand there are a lot of political headwinds that could limit future fossil fuel development?
- What effects, if any, are you seeing on the minerals market due to the current political climate?
Changing gears, we are seeing the North America onshore drilling rig count slowly increase each week and it seems like activity is located in the usual areas (Permian, Eagle Ford, SCOOP/Stack, Haynesville, and Marcellus getting the most attention).
- What are you hearing about some potentially overlooked areas or are there any areas that seem to be of particular interest to investors right now?
- Is there anything else you’d like to mention before we wrap up?
How to Contact Tim
Resources Mentioned in This Episode
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