Our primary objective is to generate stable cash flows, allowing us to make quarterly cash distributions to our unit holders and, over time, to increase those quarterly cash distributions. Within our core operating area, we develop, produce, and acquire mature, long-lived oil and gas properties with predictable production profiles. To achieve this, we intend to execute the following strategies:
Remove risk from our portfolio through active commodity hedging:
New Source Energy Partners has commodity derivative contracts covering approximately 68% of our estimated total production for the year ending December 31, 2014, based on production estimates contained in our reserve report.
Pursue accretive third party acquisitions of long-lived, low-risk, producing properties:
We intend to pursue acquisitions of third-party producing properties. We will pursue additional acquisition opportunities when we believe we possess a strategic or technical advantage.
Maintain cash flow by investing only necessary capital expenditures:
Taking the long-term view, our infrastructure serves as a platform for future growth. Many of our properties have future development and production opportunities above and below the reservoir we are currently producing. Once operations commence, we will benefit from the existing infrastructure and knowledge base.