Ask-the-Analyst September 2019
Ask-the-Analyst: Todd Bush, Boyd Skelton, and Jonathon Clark. Earlier this week we caught up with Monarch Silica to discuss their Eagle Ford and Mid-Continent plans. Tune in tomorrow for a breakdown. #OilandGas #Energy #shale #fracsand #eagleford #midcon
Earlier this week we caught up with Monarch Silica and here are some key takeaways:
Eagle Ford: Southern Hills Plant 1. Ramping up production. Currently, the plant is operating just above 50% of nameplate capacity(4MMTPY), however, management expects to hit full capacity this year and into early next year with no plans of facility expansion. Material is about 60:40 split of 100 and 40/70 mesh.
Oklahoma: Canvasback Facility 1. Expects to begin construction soon with a Q2’20 start date. Currently, Monarch is in the public notice phase of Oklahoma’s permitting process. Expects prices to be in the high 20’s too low 30’s when starting up. Management believes it’s unlikely the 2MM+ TPY plant will hit full capacity, however, expects to operate at around 1.3MMTPY. Facility will have three-four 5,000 ton silos on grounds.
As more information comes our way we will update.
With #WTI currently hovering around $56/bbl, the US #unconventional pressure pumpers are running a total of 367 crews across seven major basins per our latest model output. #pressurepumping #fraccrews
Permitting 🔥hotspots🔥 were concentrated near Karnes and Gonzales county in the Northeast section of the 🛢️Eagle Ford🛢️.
From Q4’18 to the end of the first quarter in 2019, West Texas traffic accidents decreased 10% and then experienced a 3% increase from Q1’19 to Q2’19. Top 3 counties with the most accidents in Q1’19 and Q2’19 were Midland, Ector and Tom Green. For a more detailed analysis please stay tuned for a full traffic report coming soon. (edited)
Westwood’s current WTI oil price outlook comprises of unique views from 24 independent economic and financial institutions. While the consensus mean points toward $60/bbl average for 2019, several of these voices have lowered their 2019 and 2020 average prices in recent months. As such, it is safe to assume that current market dynamics support a more bearish picture than anything else.