Manufacturing mode, minerals, and midstream — oh my! Skye Callanatine represented both Felix Energy and Fortis Minerals last week and shared the unique perspective of a private pure-play Delaware operator with the aforementioned O&G trifecta. With a backdrop of building and selling over $2.5B of assets (most notably, Felix’s $1.9B sale to DVN in 2015), Skye and his team have led the latest iteration of Felix to its current 8-rig program targeting 8-well pads in the Delaware Basin. Data was an integral part in assembling the company’s position on the eastern flank, and remains a core part of the business used to deliver repeatable EURs across multiple benches. What’s been helpful along the way to both upstream ops and the financial profile of the overall entity is the integrated midstream business, which is expected to propel the company to free cash flow generation next year. Similarly drawing on experience and knowledge across multiple basins, the Fortis Minerals team has accumulated a sizeable mineral interest position in both the Delaware Basin and the STACK. As always, it was a treat to get a glimpse into the sometimes opaque strategy / operations of a large private operator, and we continue to look forward to how one of the most vertically integrated O&G companies continues to develop over time.