Author: Brandon Waiter

The Sand Plateau, Cashless Profits, and More From Earnings Season

Key Trends:Pressure pumpers continue to see utilization rates rise for equipment while trying to keep up with the demand of hiring new crews. Operators hold plans steady during the quarter with some reducing CAPEX plans for the year due to lower than expected commodity prices. DUC count rises due to increased rig activity in the first half of the year as operators put a focus on drawing down inventory. Drillers continue to push for rig automation to reduce boots...

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Parsley Energy Grows Drilling Inventory 73% with Permian Acquisition

Parsley Energy (NYSE: PE) announced in its Q1’17 earnings call that it had closed the acquisition of about 71,000 acres and associated assets in the Permian Basin from Double Eagle Energy Permian LLC. The acquisition — which spans Dawson, Andrews, Martin, Howard, Midland, Glasscock, Upton, and Reagan Counties — increases Parsley’s total leasehold in the Permian to about 230,000 net acres and grows its net drilling inventory (in terms of locations in priority target zones) by 73 percent:Source: Parsley Energy...

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Mammoth Reports Growth in Pressure Pumping, Frac Sand Production, Directional Drilling

On May 3, 2017, Mammoth Energy Service, Inc. (NASDAQ: TUSK) hosted its quarterly earnings call to report results from Q1’17. Highlights included a dramatic increase in YOY pressure pumping activity, progress on two key frac sand production facility acquisitions, and growth in the company’s directional drilling fleets.Mammoth reported Q1 spending of about $31 million, most of which is tied to delivery of 75,000 HHP and associated equipment ordered in November 2016. Other factors includeAcquisition of three high-pressure fleets totaling...

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NOV Banks on Growing Demand for Longer Laterals, Improved Monitoring

On April 27, 2017, National Oilwell Varco (NYSE:NOV) released its Q1’17 results to investors in its quarterly earnings call. During the first quarter, the company booked orders for75,000 HHP additional hydraulic fracturing equipment, bringing the company’s 2017 total to 150,000 HHP 30 high-spec well servicing rigs, featuring components that optimize a rig’s ability to adapt to a variety of applications, including extended lateral completions 16 NOVOS™ rig operating systems, which automate drilling activities and leverage real-time data for optimizing...

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Earnings Season Recap: E&Ps Prepare for 10%+ Cost Increases

Key Themes from Last Week's Earnings CallsE&P capital remains unchanged going into the second quarter Frac crews are sparse as many pressure pumpers continue to reactivate fleets Drillers see increased day rates to around $20K per day as operators continue increased drilling programs Frac sand prices are increasing as sand shortages continue Sand companies looking to increase supply with greenfield and brownfield expansionThe DetailsRange Resources (NYSE: RRC) drilled 3 laterals over 15,000’ and seven over 10,000’ in the...

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Pioneer Energy Services Banks on Increased Activity in 2017

On February 17, 2017, Pioneer Energy Services (NYSE: PES) shared with investors its Q4’16 results and some details from its Q1’17 guidance. The company’s drilling rig utilization was 48% in Q4’16, up from 38% in Q3’16; for Q1’17, utilization is expected to increase to 70-73%.Forty-one percent of PES’ TTM revenue came from its US drilling services and 57% from its production services, encompassing well servicing, wireline, and coiled tubing:Source: Pioneer Energy Services Investor Presentation, February 2017 The company reported that some...

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Patterson-UTI Increases Average Rig Count, Moves Closer to Merger

On February 9, 2017, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) reported financial results for the three months and twelve months ended December 31, 2016.In the fourth quarter of 2016, Patterson’s average rig count in the United States increased by six to a total of 66 rigs. As a result of the decrease in the proportion of rigs on standby, total average rig operating costs per day during Q4’16 increased to $13,770, compared to the previous quarter of $13,180. Without the decrease...

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Marathon Unveils $2.2 Billion 2017 Capital Program

On February 15, 2017, Marathon Oil Corporation (NYSE: MRO) announced results from Q4 and FY 2016 and unveiled a 2017 capital program of $2.2 billion, with over 90 percent allocated to its high-return U.S. resource plays. Oklahoma Led Production in the Fourth Quarter On the operations side, Marathon’s production averaged 341,000 BOED in Q4 2016, with assets in the Oklahoma Resource Basins reporting a production increase of 60% over Q4 2015. E&P production costs for North America were down more than 30%...

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