For over two decades Citation has pursued a focused business strategy of acquiring and operating domestic oil and gas properties. As our asset base has grown over the years, our focus has sharpened. Today Citation has a dominant position in several of the premier, mature producing basins onshore in the United States. From this platform, we continue to execute our growth strategy on two fronts: (1) the acquisition of long-lived, domestic oil production, and (2) the exploitation/enhancement of our producing properties through the application of primary, secondary and tertiary recovery techniques.
Key elements that contribute to the successful execution of this strategy include:
Long-term focus
As a private enterprise, Citation is not overly driven by pre-defined growth targets or achieving next quarter's production or earnings targets. Rather, we seek to build value and generate consistent returns on invested capital over the long-term. Operational and investment decisions are not constrained by a near-term time horizon, which provides our management and staff with the flexibility to capitalize on opportunities and adapt to changing conditions as they occur.
Two-pronged investment approach
With a long-term focus and patient capital, Citation can afford to maintain investment discipline and take advantage of the changing market dynamics in the E&P industry. As a result, our investment philosophy is counter-cyclical. We are aggressive in acquiring producing assets when commodity prices are in a down cycle. When oil and gas prices are rising and market valuations for producing properties exceed our risk-return expectations, capital is directed towards the aggressive exploitation and development of our existing property portfolio.
Click here to learn more about Citation's Acquisitions and Development strategies.
Efficient, high-quality operations
At the root of Citation's historical success is its relentless focus on controlling costs and improving production performance. When we began acquiring producing properties in the mid-1980s, our ability to lower lease operating costs was critical to the realization of acceptable investment returns. This dogged attention to continually grow lease operating margins continues today and is embedded as a key element of the Citation operating culture.
Engineering-driven ideas
Citation's assets are among some of the most mature onshore oil fields producing in the U.S. These reservoirs provide tremendous leverage to advances in oilfield technology and improved operating and recovery techniques. Our regional asset teams are staffed with experienced oil and gas professionals across multiple disciplines that apply their talents to identify acquisition and exploitation opportunities that are supported by rigorous engineering analysis. Creativity, initiative and collaboration in an entrepreneurial environment enable our employees to drive our continued growth and profitability.
Talented, stable workforce
Citation enjoys an enviable track record in attracting and retaining high-quality talent. This is the result of a stable, long-term business model and a corporate culture that emphasizes working smart and rewards both performance and technical achievement. Citation owns assets that are of sufficient size and scope to provide leverage to great ideas. We have assets with scale, and yet an organization small enough where individual contributions can have a meaningful impact on corporate performance.