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 reserves and more about cash flow this time around. Expect the government regulators to be strict with the banks’ lending ability. Companies across the industry are keeping an eye out for acquisition opportunities.
Weekly Rig Chart
Summary of Plays
- Permian Basin –2.0% to 245 rigs compared to last week’s 250 rigs
- Eagle Ford -3.5% to 82 rigs compared to last week’s 85 rigs
- Williston -1.5% to 66 rigs compared to last week’s 67 rigs
- Marcellus -4.1% to 47 rigs compared to last week’s 49 rigs
- Mississippian stayed flat at 14
- DJ-Niobrara -10.3% to 26 rigs compared to last week’s 29 rigs
- Utica +5.0% to 21 rigs compared to last week’s 20 rigs
- Cana Woodford -7.5% to 37 compared to last week’s 40 rigs
- Haynesville stayed flat at 26 rigs