TER: Why did you initiate coverage of Earthstone Energy in December 2014? JW: Earthstone just finished a reverse merger with a private company called Oak Valley Resources LLC. I've known the management at Oak Valley for quite a few years. They used to run a company called GeoResources Inc., which was bought a few years ago by Halc�n Resources Corp. (HK:NASDAQ) for about $1 billion ($1B). The management team made these kinds of deals three or four times. The team has been very successful; members know how to not only build an oil and gas company, but also how to create the endgame of monetizing it. I think they have a great opportunity to do it again at Earthstone. The last time the management team entered into a very successful merger was 2008�2009, when most people were in a bad spot. I initiated on Earthstone when the Oak Valley deal closed in December. The company has $100 million ($100M) in cash and no debt on the books.