Peak Land Services Co-Founders were recently interviewed in a feature article for the Midland Reporter-Telegram’s Oil Report.
“Land company focuses on liens, bankruptcy diligence in troubled energy economy”
By: Mella McEwen
Full Story on MRT Click Here
“In recent months, Midland’s Peak Land Services has seen its work evolve along with the economic state of the oil and gas industry.
From typical land work – leasing, title, due diligence – the company has broadened its services to include the research necessary to file liens against mineral properties and assisting in bankruptcy due diligence.
“We always have our clients’ best interests in mind, no matter what service we are providing,” Cole Frederick, Peak Land co-founder told the Reporter-Telegram by email. “During trying times like these, it is imperative to have a clear line of communication so that the client, and we, have a firm understanding of where resources are to be directed. If we are not on the same page with the client, then guiding them properly through filing liens on mineral property cannot be accomplished. As soon as communication is set and goals are defined, we can begin our process.”
Asked what steps the company takes to ensure it’s providing the correct guidance and assistance, he replied, “In regards to filing liens on mineral property, we are well versed on Chapter 56 of the Texas Property Code which sets out the necessary requirements. In addition to adhering to the rules set forth in Chapter 56, we always like to work in tandem with a reputable law firm, who knows the law inside and out. This way, if there is ever a question about how best to handle a particular circumstance of high significance, we (along with the client) can collaborate with the attorneys and properly assess the situation to make the best decision to protect the client. We like to keep the client up to speed on everything and in the know. Timing can be crucial when it comes to filing your lien in the county clerk’s office, and having everyone caught up on where the project is allows for efficient decision making with no wasted time. Above all else, being a service provider ourselves, we understand the vital importance of being paid timely for invoices. So naturally, this is a service we take pride in providing.”
With oil prices at 18-year lows, Frederick and Mitchell Eberenz, also a Peak Land co-founder, expect demand for this particular service to continue.
“We believe that if oil prices stay this low, oil and gas companies or their vendors who have high accounts receivable from companies with heavy debt will keep this service in high demand,” Eberenz told the Reporter-Telegram by email. “A lot of service providers in the Permian (including landmen and land service companies) work on a net 30- to net 120-day invoice structure. This means the services are performed by the vendor far in advance of when they are paid by any client for that particular service. This creates a large buildup of working capital for vendors. With everything going on right now I think people would rather be proactive and protect their assets. If oil prices remain in the $20’s we think there could be a big uptick in bankruptcies. Even if groups don’t go bankrupt, there will definitely be a shortage of cash, and when conventional money isn’t available, we envision companies leaning on their vendors or service providers to extend payment terms in order to preserve cash flow in the short term. This leaves companies wondering if and when they will get paid.
“As landmen, we go where the work is, and right now we are just getting a lot of inquiries about this specific service. We hope that prices go up and stabilize here soon so that we can go back to doing conventional land work for our partners in the industry.”
Peak Land Services LLC provides landman related services throughout Texas, New Mexico, Oklahoma, and Louisiana. The company is headquartered in Midland and has additional offices in Fort Worth and Sacramento, California.”