Investment Strategy
Discipline Before Capital
Every acquisition begins with a question: would we hold this asset for the life of the well? If the answer is not unambiguous, we pass.
Hadrian Resources approaches mineral and working interest acquisition as a long-duration underwriting exercise. We are not traders. We do not chase momentum or rely on commodity price assumptions to justify entry. We underwrite to the rock, the operator, and the production history — in that order.
Our process is deliberate and our criteria are fixed. We move quickly when an opportunity meets our standards and decline without hesitation when it does not.
"We underwrite to the rock, the operator, and the production history — in that order."
Our Process
Geological Evaluation
We begin with the subsurface. Target formations must demonstrate proven productivity within our operating basins — Permian, Delaware, DJ, and Powder River. We evaluate net pay, porosity, permeability, and lateral continuity before any financial modeling begins. Acreage in unproven formations does not meet our criteria regardless of price.
Operator Quality
The operator running the program materially affects realized value. We assess completion design, lateral length trends, spacing decisions, and historical production performance relative to type curves. We will not acquire interest under operators with a pattern of underperformance, regardless of how attractive the geology appears on paper.
Production Analysis
We require a meaningful production history before committing capital. We analyze decline curves, GOR trends, water cut, and pressure data to form an independent view of EUR. We do not rely on seller-provided type curves. Our reserve estimates are internally generated and stress-tested against conservative commodity price decks.
Title and Legal Integrity
Clean title is non-negotiable. We conduct thorough title examination on every acquisition, regardless of size. Encumbrances, lease depth limitations, and royalty obligations are fully mapped before closing. We do not accept representations in lieu of examination.
Return Thresholds
We underwrite to a minimum unlevered IRR and PV10 threshold that accounts for geological risk, operator risk, and commodity price volatility. Acquisitions that require optimistic assumptions to clear our hurdle rate are declined. We would rather miss a deal than own a problem.
A Process Built for the Long Hold
Hadrian Resources does not manage to a quarterly mark. We acquire assets we intend to hold through the full production life of the well — and we underwrite accordingly. That discipline is the foundation of everything we do.