Ask-the-Analyst August 2019

Ask-the-Analyst August 2019

Thursday 8/29

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Luke Smith. Which state uses the most #proppant? How much? Find out in the comments below tomorrow! #OilandGas #Energy #shale

Texas is the largest consumer of proppant. In Q4 2018 it accounted for a little more than half of all proppant consumption in the onshore US.Within Texas, the Permian basin region is the largest consumer, followed by the Eagle Ford.

Friday 8/23

Ask-the-Analyst: Todd Bush, Boyd Skelton, and James Jang, M.Sc.. What’s the current status of Concho‘s ambitious Dominator pad complex? It’s still considered as one of the largest cube development projects ever done by any operator. Find out Monday! #OilandGas #Energy #shale

As of last week:

• Permitted: 48 wells (Westwood database)

• Spudded: 26 wells (Westwood database)

• Completed (in-production): 23 wells (New Mexico Oil Conservation Division database)

That leaves 3 DUCs waiting to be frac’ed and completed. 

Tuesday 8/20

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Luke Smith. How has proppant usage changed from 2015-Present for select companies in the #Williston basin? #OilandGas #Energy #shale

Proppant usage has declined on a per well basis among top E&Ps in the Williston basin. While proppant usage picked up after the O&G recession it has begun to decline since 2018. QEP and Hess appear to be bucking the trend, however.

Thursday 8/15

Ask-the-Analyst: Todd Bush, Boyd Skelton, and James Jang, M.Sc.. What’s an average spud-to-first production cycle time for the top operators in the #Delaware basin in 2018? #OilandGas #Energy #shale

Matador and EOG led the pack in 2018. (This is not an anomaly; the best performers have been generating best cycle time results over several years).  Looking at the individual companies closely, however, MTDR also had the shortest lateral length which would result in less drill time.  EOG stands out as having similar cycle time as MTDR while drilling nearly 7 times more wells (220 wells vs. 34 wells) without deteriorating variability (32% vs. 31%)

Tuesday 8/13

Tuesday 8/08

Ask-the-Analyst: Todd Bush, Boyd Skelton, and Luke Smith. How has proppant per horizontal-well evolved over the years? #OilandGas #Energy #shale #proppant #fracsand

The past several years have been marked by increases in proppant per horizontal-well.  However, in the past few years, decline has occurred in the Williston and stagnation has occurred in the DJ-Niobrara. The Haynesville, Marcellus, Eagle Ford, and Permian continue to experience growth.

Thursday 8/01

Ask-the-Analyst: Todd Bush, Boyd Skelton, Jonathon Clark. Quarterly earnings for Q2’19 are underway. Do you know what operators are saying about sand and logistics? Tune in tomorrow for a breakdown. #OilandGas #Energy #shale #proppant #fracsand

Second quarter results have surfaced and here are what 3 operators have said thus far about sand and logistics: Antero Resources: “Antero previously executed its first direct sourcing sand supply agreement at the end of 2018. The Company executed a similar agreement with a premier sand supplier in the second quarter of 2019 and expects to increase directly-sourced sand supply from 75% currently to 100%. Additionally, “our service cost deflation initiative, sand savings and efficiency gains have resulted in per well savings of approximately $500,000 per well…” Encana Corporation: “There’s a number of factors that our play allowed us to drive our cost down by $1.4 million. We went to in-basin sand, which took about 30% out of the sand cost from where we were previously. Also, then went to rearranging our sand deliveries going to sandboxes. And that again allowed us to drop our costs and come out significantly more efficient from a scheduling standpoint.”

Matator Resources also mentioned working with Halliburton on using “local sand” to bring down costs. 

As more companies release Q2’19 reports we will keep you updated. 

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