Business Model

BRC has created an integrated execution model to maximize the value of its resource potential. BRC intends to become a leading producer in the Marcellus Basin. The key elements of the business model include:

• Attractive Position In The Marcellus Shale

• Sound Business Strategy Across The Value Chain

• Strong Execution Capabilities


Attractive Position In The Marcellus Shale

BRC has acquired approximately 600,000 net acres of lease and minerals positions across the Marcellus Basin. A large majority of the position lies in West Virginia, with the remainder in Pennsylvania, Kentucky, Maryland, and Ohio. The positions largely sit in the Marcellus fairway and were prospected by the Unconventionals, a pre-eminent unconventional G&G shop. The positions sit within close proximity to significant third-party activity throughout the basin. Many of the positions are in large contiguous parcels that provide for efficient delineation and the execution of a scaled drilling program. The vast majority of the positions are either owned fee simple or with leases that provide significant flexibility to hold by production. This ownership position makes the option to develop the potential deeper pay zones even more valuable.






Sound Business Strategy Across The Value Chain

The BRC strategy is to create a leading unconventional natural gas position in the Marcellus Basin.
It consists of:

• Scaled Development Strategy: A strategy focused on developing BRC’s large, contiguous acreage blocks through the use of best-in-class technology and an operating system developed through years of experience with the major oil companies.

• Commercial Optimization Strategy: A strategy focused on maximizing value of BRC’s acreage and minerals positions. It will involve a combination of opportunistic drilling and transactions to find natural owners for all parcels of land.

• Fast-Follower Technology Strategy: A strategy focused on leveraging a scaled acreage position to gain access to the best- in-class “super-major” technology. BRC expects to utilize best-in-class horizontal drilling technologies in combination with the newest completion technologies that have been successful in other unconventional shale plays.

• Midstream Strategy: A strategy focused on developing the necessary infrastructure to ensure all gas is delivered to market without delay. It will likely involve a combination self-build and partnerships to build out the needed infrastructure to move BRC volumes as well as other volumes in the Basin.

Strong Execution Capabilities

BRC’s execution model is designed to combine best-in-class in-house capabilities with best-in-class external providers. Whether it was driving down well cycle times in unconventional basins, raising capacity factors at both nuclear and coal generating facilities, or driving down SG&A costs, the BRC management team has proven its ability to drive operational performance across the value chain and to create a culture of continuous improvement. The management team brings best-in-class capabilities across strategy, valuation, execution, M&A, capital formation, drilling, technology, and governance. BRC plans to partner with providers across the value chain to gain access to the technical capabilities of a “super-major.”

The execution model is anchored with a disciplined performance management system and alignment of incentives for both employees and contractors. A significant part of all employee compensation is linked directly to firm performance and contractor arrangements are generally designed to incent optimization of key value drivers. Below are the biographies of the BRC management team.