Author: Brandon Waiter

Horizontal Rigs Decline -2.9%

The total US Land Rig count was down -23, -2.9% last week with -18 horizontal rigs released. The horizontal rig count dropped to 598, -55% change compared October 2014.More discussions this week about the fall redetermination period. Each spring and fall, banks that lend to oil and gas companies do what's called a "redetermination." The banks calculate how much oil & gas companies can borrow based on reserves, commodity prices, and what the company has hedged.The redetermination conversations will be less about...

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Permian: Operators Prepare for 2nd Half of Year with New Drilling Permits

The month of August has seen oil prices continue to slide to six year lows dropping into the low $38 range which hasn’t happened since February 2009. Land rig counts as well as permit activity declined too. The Permian had a total of 142 permits issued during the week of the 21st (20150821) this is down -209% from the same week last year which had 439 permits issued.Midland, Lea, and Eddy are Strongest Counties in August The top permitting week in...

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BHI Land Rig Count Climbs +2.1%, Adding +17 Oil Rigs

WTI crude continued its slump in July, entering the month at $56.96 and hovering just above $48 today. In a change of pace this week, the BHI land rig count jumped +2.1% to 830 rigs, from the past week's 813 rigs.Image Source: Bloomberg.com Oil rigs were the driving factor this week, adding +17 rigs, while gas rigs stayed flat at 206 rigs. Operators are expected to react to the recent price slump in their Q2 earnings reports and meetings over the next...

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Permian: Midland & Crockett are Top Counties for Drilling Permits

The week of July 17th drilling permit activity was down -34%, with 65 permits issued. The top counties were Midland and Crockett. Both counties had 0 permits issued the week prior. Rig activity in the Permian showed positive signs, with rigs increasing +3 this week.The chart below shows the decline in activity this year compared to the same week at this time last year, which had 235 permits during the week. Core Permian Counties The top 5 permitting counties from last week (2015-07-10), which include Reeves, Lea,...

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Eaglebine: Anadarko Completing Wells & Improving Performance

The concentration this week is in the Eaglebine area in East Texas, which includes the counties of Brazos, Burleson, Grimes, Houston, Lee, Leon, Madison, Milam, Robertson, and Walker. In the month of May, there were a total of 26 permits issued, with top permitting counties being Madison, with 8, and Burleson, with 5. There were 0 permits issued during the first week of June, although activity resumed this past week with 6 total permits. 2 of those were in Milam and...

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Horizontal Rigs Stay Flat While Vertical Rigs Drop -10.1%

The BHI land rig count declined -0.8% to 827 rigs from last week's 834. The decline this week stems from the vertical rig count, which dropped 11 rigs or -10.1% from last week's 109 rigs. The horizontal rig count stayed flat at 666 rigs and the directional rig count jumped +4 rigs to 63 from last week's 59. The Eagle Ford sank this week by -7 rigs, 4 of which were oil rigs and 3 were gas. Basins with one...

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Weekly Permits: Weld County, CO is Focus for Niobrara Operators

Permit activity in DJ-Niobrara dropped off -24.24% from the prior week to 25 permits for the week of 2015-05-18 – 2015-05-24, compared to prior week's 33 permits. The heaviest activity was in Weld County, CO where 24 of the 25 permits were obtained compared to 33 for the prior week. The 24 permits were made up of 16 horizontal, 1 directional, and 7 unknown. The horizontal permits declined -45% from the prior week. Adams County, CO had +1 permit this week, secured by Ward...

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Noble Energy Acquires Rosetta Resources for $2.1B

The focus this week has been around the ice breaking transaction between Rosetta Resources (NASDAQ: ROSE) and Noble Energy (NYSE: NBL), with Noble acquiring Rosetta in an all-stock transaction valued at $2.1 billion. The current conditions have created uncertainty within operators that are leveraged, especially those that were positioned for a much higher commodity price environment. In Rosetta’s case, the deal was based off of net debt of $1.8 billion. Some analyst are expressing that this could be the deal...

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