The Tri-C Journey with Cullen Cone - Ep 141

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In this episode of FPO&G, we sit down with Cullen Cone, COO of Tri-C Resources Partners, to explore how three generations of oil-and-gas experience have shaped the company's 40-plus-year journey. From wildcat exploration to the debt-free acquisition of proved developed producing (PDP) assets, Cullen shares how Tri-C has evolved across the industry's risk spectrum. He also discusses the company's future and its differentiated strategy of avoiding leverage and hedging, maintaining the financial flexibility needed to acquire attractive cash-flowing assets, primarily along the Gulf Coast.

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Takeaways:

• Cullen grew up around oil and gas and this family legacy shaped my career choices profoundly.
• Tri C Resources transitioned from exploration to a PDP driven strategy to eliminate reservoir risk and stabilize cash flow.
• They deliberately avoid leverage and avoid hedging in order to preserve operational agility and rapid all cash acquisitions.
• How they implemented strict underwriting that models downside pricing and allocates for plug and abandonment costs conservatively.
• How they use the Tri-C brand, operational experience, and local relationships to close small Gulf Coast deals quickly and efficiently.
• The structure of the fund provides quarterly distributions with a perpetuity option, removing a shot clock for capital deployment.
• They believe disciplined, margin focused asset aggregation across basins can expand geographic scope while preserving investor returns and downside protection.

Chapters:

• 00:09 - Guest Introduction — Cullen Cone

• 05:54 - From Backseat to Classroom: College Years and Petroleum Internships

• 20:10 - From Wildcatting to Cash Flow: Shifting the Firm's Risk Profile

• 37:37 - Pitching the PDP Strategy: Perpetuity Model, Proxy Assets, and No Shot Clock

• 52:34 - Vetting Investment Strategies: Spotting Levered Beta in Pitch Decks

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Resources:

Tri - C Resources

Cullen Cone on LInkedin

‍Disclosure: This information is for informational purposes only. Nothing discussed during this video should be interpreted as tax, legal, or investment advice. If you have questions pertaining to your specific situation, please consult the appropriate qualified professional.