Massive Recoverable Oil and Gas at Permian’s Delaware Basin

Travis Newkumet

A third-generation member of a noted family of oilmen, Travis Newkumet earned his BBA from Southern Methodist University, where he was a Frank L. Pitts Oil and Gas scholar. Travis Newkumet co-founded Regions Permian, LLC, an oil and gas firm which has leasehold interests across the Permian Basin and is acquiring interests in the heart of the Midland and Delaware Basins in Texas and New Mexico.

The Permian Basin is one of the richest oil and gas producing regions in the US, covering around 86,000 square miles and spanning portions of Texas and New Mexico. Both the Midland and Delaware basins are located within the Permian field. In December 2018, the U.S. Geological Survey (USGS) reported that Delaware has around 46.3 billion barrels of recoverable oil in its Wolfcamp Shale and Bone Spring rock formations, twice the amount recorded in Midland.

Additionally, Delaware’s natural gas holdings are approximately 281 trillion cubic feet, which is about 18 times the amount held in the better known and more intensely drilled Midland Basin. The research only explored the two rock formations, and industry experts note there could more oil in the area. Both the Delaware and an earlier Midland report are the “largest continuous oil and gas estimates ever released” by the USGS.

Securing the Future of Private Equity Partnerships

Private Equity
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While concurrently serving Regions Permian, LLC, as CEO and Regions Energy, LLC, as managing member and CEO, business executive Travis Newkumet has led these companies in countless acquisitions and asset divestiture. Despite the fast changing economic environments, these companies have been expanding under the leadership of Travis Newkumet, who possesses nearly a decade of experience in private equity.

According to experts, private equity funds last up to 12 years and sometimes longer. This fact requires advanced planning, especially for those who share ownership of a fund. With retirement looming, issues may arise due to differences in asset valuation. So, how do the partners secure the future of the private equity partnership in the light of future retirements? The key is a concrete succession plan.

There are different options for succession planning. One is a gradual transfer of ownership in the management as part of compensating junior partners and employees. Another option is to sell the interest of the retiring partner, including all potential financing options, to the remaining partners. They may also opt to set up a new partnership to separate the old structure from the new one. Regardless of the option, the succession plan must be done as early as possible as it may have potential financial and tax implications.

Early on, the private equity partners must seek professional help from attorneys or advisors. It is difficult for the partners to assume that they can handle the transition all by themselves. A mediator will help the partners in agreeing on important issues such as valuation and the roles that retiring partners will have in the future.

A smooth transition in the future hinges on a well-thought-out succession plan. Laying down the big picture of the partners’ individual exit and the assumption of leadership positions by new partners secures the future of the private equity partnership.

An Introduction to the President’s Scholars Program at SMU

 

President’s Scholars Program at SMU
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The CEO and cofounder of Regions Energy LLC, Travis Newkumet has assisted in the acquisition and divestiture of more than $500 million in assets with a focus on Texas’s Permian Basin. Over the years, Travis Newkumet has received multiple honors for his achievements, including the L. Frank Pitts Oil and Gas Scholarship as part of the President’s Scholars Program at the Southern Methodist University Cox School of Business.

The President’s Scholars Program draws some of the nation’s most promising scholars to Southern Methodist University. The program was established in 1982, and it now annually awards scholarships to 20 to 25 of its most talented first-year students. In order to attract exceptionally-gifted students to Southern Methodist University, the scholarships cover all fees and tuition for eight academic semesters, unless a student graduates in less time.

The President’s Scholars Program is funded in part by a group of individuals and foundations, including the Peggy Bauervic Foundation, the Rainer Family, and the Roy and Christine Sturgis Charitable and Educational Trust of Dallas. Accordingly, the scholarships are named in honor of these generous supporters. This includes three scholarships from the Custard and Pitts Family: the L. Frank Pitts Endowed President’s Scholarships, the Linda Pitts Custard Endowed President’s Scholarship, and the William A. Custard Endowed President’s Scholarship. To see the President’s Scholars Program’s complete list, visit the Southern Methodist University website at www.smu.edu.