Phoenix Capital has been operating for over 2 years and was formed by a group of oil & gas industry professionals. With a headcount of 30 as of today, we have in-house expertise in oil & gas, engineering, land and title, sales and marketing, and finance. The Company has a proprietary software that identifies lucrative, targeted, mineral assets that fit our model in the Dakotas, Wyoming, Colorado, and Texas. By presenting buyers with a fair, all cash offer, we are able to strategically acquire assets that have short term payback periods and generate considerable post-payback cash flow. Additionally, our non-operated interests have tremendous upside if and when future drilling occurs. We model everything from acquisition price to forecasts based on oil pricing that is at a 35% discount to market for a conservative approach. The Company has grown from a startup 2 years ago, to one that generated over $18,000,000 in revenue in the last 12 months while also generating $5,000,000 in EBITDA. The company has been financed without any equity funding by using only founders seed capital, reinvestment of organic cash flows, and a very modest commercial line of credit. Having more than validated our model, we are simply looking to scale by offering high yield notes so we can accelerate our acquisition opportunities. We expect our cost of capital to decrease as we continue to mature, however we recognize that we are not currently large enough to access most meaningful commercial lending markets at reasonable rates and line size. The Company has offices in Southern California and Colorado and is prepared to utilize the capital solely for new mineral right acquisition. As a profitable enterprise, there is no need for day to day operational capital, or ambiguous expenditures, we simply want to buy more cash flowing assets, at attractive values. The goal is to accelerate this process with adequate capital to continue to bolster our portfolio. The duration of the notes, and the corresponding rate, is at the discretion of the investor based on our offering of 1,2,3, and 4 year notes with a sliding scale of interest based on check size and maturity duration. Interest is paid quarterly until maturity at which point principal can be redeemed. We maintain extremely conservative debt to asset ratios, and with this new debt being deployed exclusively for asset purchases, those ratios will remain in tact and ultimately decrease once fully deployed.
For more information please contact:
Phoenix Capital Group
Matt Willer
Vice President of Capital Markets
[email protected](720) 408-1850 tel
www.phxcapitalgroup.com