Author: Todd Bush

Halcón Enters Southern Delaware Basin, Plans to Expand in Bakken

Halcón Resources Corporation (NYSE:HK) has announced agreements that will mark the company’s entry into the Southern Delaware Basin and released preliminary details on its planned activity for 2017, including expanded activity in the Williston Basin. New Deals Mark Halcón’s Entry Into Delaware Basin The company announced its entry into the Southern Delaware Basin through two key agreements:A purchase and sale agreement with a private operator to acquire 20,748 net acres in the Southern Delaware Basin (the "Pecos County Assets") for $705...

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Proppant Insights: Can a Legacy Pressure Pumper Return to Former Glory?

Well services companies suffered through harsh conditions during the last 18 to 24 months. Weatherford (NYSE: WFT), along with many others, are no longer in hydraulic fracturing business. BJ Services returns to a much different Lower 48 well services landscape.Halliburton (NYSE: HAL) gained strength in the Lower 48 market moving from 27% in 2015 to 30% in 2016. Schlumberger (NYSE: SLB) is the number two pressure pumper in the Lower 48 with ties to large independents in the Eagle Ford...

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Proppant Insights: The Battle for Frac Sand Market Share

The last quarter brought about activity across frac sand suppliers as providers continued moving towards the Permian Basin. For the last three quarters, Permian leads proppant demand. Due to the reporting lag in completions, expect the Q2 numbers to increase by another 10-20%.Since 2015 Q4, E&P companies in the Permian have consumed approximately 11 billion pounds of frac sand. Recent well reports show 1,200 - 1,500 pounds of proppant per lateral foot in the Delaware. A few E&P's are pumping nearly...

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Proppant Insights: Decoupling of Supply Chain Continues

The volatility during the quarter caused more uncertainty in the industry, even though oil stabilized near $40 at the end of Q1’16, Many now believe that “the bottom” was reached earlier this year. In-basin Delivery Becomes Vital The logistics of getting to the wellsite are challenging to say the least. The last mile trucking from terminal to well site is critical, especially in today’s market. Numerous frac sand suppliers and chemical supplier relayed stories of E&P’s expecting in-basin delivery of supplies in...

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Haynesville DUC Count Declines through 2015 and 2016

In the last piece on uncompleted wells explored North Dakota showing the impacts and trends that the uncompleted wells have on the market. Now how does one figure out the number of uncompleted wells without over or under counting? This article will show the approach of the DUC analysis by using the Haynesville play highlighting some of the difficulties and uses of this data. The chart below shows a glimpse of the outcome of this analysis and where the DUC...

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Murphy Oil Cuts Budget by 73% in 2016

Murphy Oil Corporation (NYSE: MUR) has cut 2016 capex once again down 30% from the initial budget of $825 million, a decrease of ~73% below 2015 spending. MUR is forecasting an increase in production from 111 MBoepd in 2015 to 180 to 185 MBoepd in 2016. 90% of Remaining Eagle Ford Locations Break-Even Below $40.50 per BblSpending in the Eagle Ford has decreased by 75% from 2015 to $203 million 55% of 2015 onshore production came from the Eagle Ford 20 wells planned...

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Permian Part 2 of 2: Top OFS Companies Lose Share of Midland Basin

As a follow-up from last weeks’ article on the Delaware Basin, this week we review the Midland basin to see how activity has declined and what counties, operators, and oilfield service companies are hanging in there. Operators in the Permian depend on the play for the best economics to produce in this low priced environment, moving away from other non-core areas.The Midland basin has seen a steeper drop in activity compared to the Delaware, showing a -65% decline in the number...

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Permian Part 1 of 2: Even $30 Oil Can’t Hold Back Delaware Basin Activity

Many operators turn their focus to the Permian as their “core” basin in 2015. The operators rely on the play to have the best economics to produce in this low priced environment, so we took a deeper dive into specific areas to show a more detailed view of activity. Part one of this article will go into the Delaware Basin and will be followed up with part 2 in the Midland basin next week. Stay ahead of your competitors by knowing DUCs by...

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