Insights

QEP Resources Increases Permian Position & Exhausts Almost 50% of Budget

QEP Resources (NYSE: QEP) is an independent operator targeting crude oil and liquids rich gas plays in the United States. The company focuses in the Williston, Permian, Pinedale and Uinta basins and plans on spending $450 to $500 million this year excluding acquisitions and exploratory drilling. QEP is currently running three rigs, one each in the Williston, Permian and Pinedale basins with the option to add a fourth in late 2016.The chart below shows QEP versus peer operators comparing the...

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Callon Petroleum Expects 50% Production Growth for Permian

Callon Petroleum (NYES: CPE) is a pure play Permian operator focused in Midland,Howard and Regan counties and is currently running a one rig program. Callon achieved production of 12,440 Boepd during the first quarter realizing production growth of 45% since the first quarter of 2015. Second quarter production is forecasted to be 14,000 Boepd at the midpoint. CPE expects to reduce fracturing cost by 62% from the last quarter of 2014 in the second quarter of 2016. Big Star Acquisition Adds Inventory...

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Energen Prepares for 2017 Increasing Budget by Over $100 Million

Energen Corporation (NYSE: EGN) is a pure play operator in the Permian Basin that recently increased its budget to drill more wells this year to grow its inventory of DUCs. The company increased its budget by $100 to $150 million which is expected to be spent in the second half of the year on building the inventory of DUCs. This brings Energen’s total capex in 2016 to $350 to $400 million with $250 to $300 for the Midland Basin and...

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E&P Earning Season Ends with DUCs, Bankruptcy, & Divesting Themes

Taking a look back at the first quarter we will review some updates from operators around the country and how they have held up into 2016 and are preparing for the rest of the year. Many have increase production guidance showing that they can still produce with declining capital budgets and others are looking to asset sales to gain liquidity. Below are some highlights from the quarter. Devon Energy Increases Production Guidance During the first quarter Devon Energy (NYSE: DVN) spent $363...

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Noble Energy Increases Production with Less Capital

Noble Energy (NYSE: NBL) continued to show discipline in the first quarter of 2016 coming in under the low end of their CAPEX guidance of $400 to $500 million at $374 million for the quarter. Cost cutting efforts have helped the company grow production while spending less. Noble exceeded the company’s production guidance at 416,000 Boe/d for the first quarter.IP-Rates Increase by 30% in the DJ-Niobrara First quarter production in the DJ basin totaled 118,000 Boe/d which has been attributed to...

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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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