The year 2015 hasn’t been an active one for A&D to date, but Jason Reimbold, senior vice president in Energy Spectrum Advisors LLC’s Dallas office, said his calling schedule has been as busy as ever. Collaboration fuels the transactions market, and participants must build consensus about how to proceed.

Reimbold, a native of Tulsa, Oklahoma, joined the U.S. Army after high school and served for four years, at Fort Drum, New York, and in South Korea, where he earned the Spurs award as a member of the U.S. Cavalry. He then graduated from the University of Tulsa with a degree in finance. During his junior year, he was introduced to the oil and gas industry when he interned for a small family office, Ensaga Energy Group LLC.

After graduation, he joined the Bank of Oklahoma’s energy lending practice, and two years later, relocated to Houston to work in A&D for PLS Inc. That led to a several-year stint at the Rodman Energy Group, where he was mentored by Cameron Smith, Bill Weidner and Scott Kessey. In 2011, he returned to PLS and helped build the firm’s advisory practice profile.

Earlier this year, he got a call from Energy Spectrum Advisor managing director Coy Gallatin, who he had previously worked with at the Bank of Oklahoma. Reimbold now originates and executes A&D engagements from the firm’s Dallas office.

In a recent interview, Reimbold discussed the few, but strong, deals that have been done in 2015, and offered his outlook.

Jason Reimbold

Investor: What’s the climate in the transactions market right now?

Reimbold: Initially, groups weren’t sure how to respond to the drop in commodity prices; teed-up sales that were scheduled to launch in the first quarter were halted. It became very important to get in front of groups, because this is a collaborative business. There aren’t many lone rangers. I spent time seeing everyone I could in order to get their views and to share my ideas. Today, we’re starting to see some movement.

Despite market conditions, companies must continue finding ways to grow through acquisitions. They have capital that’s been committed and must be put to work. On the divestment side, other companies need to refocus and clean up their portfolios. A&D is not an occasional exercise, it’s a necessary and ongoing practice in the industry.

Investor: You noted that deals have been done at strong valuations, despite low commodity prices.

Reimbold: Yes. That could be for a number of reasons. A shortage of opportunity, combined with a surplus of capital, could be part of the dynamic.

We’ve seen a couple of transactions get done in the Marcellus and Utica. Those are very exciting areas even at today’s natural gas prices. Trans Energy Inc. just sold about 5,000 acres in Wetzel County, West Virginia, for just over $71 million. We’re not sure of the production component, but it points in the direction of a high acreage value.

A few counties over, Paloma Partners II sold undeveloped leasehold to Gulfport Energy Corp. at about $12,500 an acre—undeveloped, dry Utica gas. That’s an exciting idea and reflects what the market believes can be achieved, even at current prices.

I think you’ll find the buyer market today to be a mix of private-equity-sponsored companies with pent-up capital and independents consolidating interests in their newly high-graded portfolios.

Investor: Your thoughts on the distress level among E&Ps?

Reimbold: Energy has historically been a solid asset class for banks, and in the tough times, they’ve worked to retain their clients.

In this first round of redeterminations this year, most groups got a hall pass. Things might change later in the year, but that has yet to happen. Of the deals that we’ve seen from banks, most were distressed at higher prices. Ultimately, I don’t think assets will be purchased as inexpensively as people may have thought when commodity prices dropped.

Look at Southwestern Energy’s deal in the ArkLaTex region, which sold for $218 million—about $5,300 a flowing Mcf. Given the asset profile, that’s a good price for today’s market. Or a smaller deal like Argent Energy US Holding’s asset sale in Brazoria County, in South Texas. It was conventional oil production of about 300 net barrels per day and sold for $20.5 million, nearly $69,000 a flowing barrel. Again, this is a strong metric for conventional Gulf Coast oil.

Investor: What’s been the most rewarding aspect of your career to date?

Reimbold: Every deal provides the opportunity to do something creative, that’s why I love dealmaking. But, the aspect I’m most proud of is the caliber of people who have trusted me to execute their transaction and for whom I was able to provide a better-than-expected result.

The next step is to mentor younger people in the industry. I’m indebted to the people who’ve mentored me, and I feel responsible for mentoring the next wave. A legacy is not a deal; a legacy is judged by how well one forges a path and prepares others to carry the torch.