Insights

Refracs: Haynesville Players Show Results

Much has been said about the potential of restimulating or refracturing horizontal wells. E&P's and Oilfield service companies have discussed refractures (refracs) in terms of opportunities. E&Ps view refracturing as a way to increase production of existing assets, as long as the equipment and technology is proven. Oilfield service companies are developing and modifying downhole tools to refracture horizontal shale wells. The first play in the refrac in-depth series is Haynesville. The refrac series will also cover Bakken, Barnett, Niobrara, Eagle Ford, and...

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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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Rig Count Trends for 2015

As the Baker Hughes (NYSE: BHI) rig count continues its downward trend from the end of 2014, we look forward to the activity in 2015. Many operators are continuing to prepare for the worst in 2015 and many are front-loading activity to the first quarter of 2015 and dropping rig counts lower as the year progresses if oil prices don’t improve. Eagle Ford According to the BHI historical rig count, activity has declined 32% from the start of 2015, bringing the count...

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$22 Billion Cut from 2015 E&P Budgets

There has been a lot of activity within E&P operators' budgets for 2015 in the face of low oil prices in the market. So far, about $22 billion has been cut from initial 2015 budgets, with more updates on the way. Continental Reduces Bakken Spend by $1 Billion Continental Resources (NYSE: CLR) has been chipping away at their budget. Their initial $4.6 billion budget for 2015 has been revised -41.3% to $2.7 billion. This revision shows a reversal in their strategy as they had originally announced a 1.1% increase...

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Halliburton Acquires Baker Hughes for Integrated Platform or Pricing Protection

Halliburton (NYSE:HAL) acquired Baker Hughes (NYSE:BHI) creating an $80bn oilfield service company second only to Schlumberger (NYSE:SLB) in market capitalization. Market Share Impact We took a look at our Frac & Proppant Database this morning to get some insight on the market share of the companies. We estimate that the combined company would represent an approximate 40% share of the Frac Market with varying share mixes in different basins/regions.There are several areas where one company is significantly stronger than the other (Williston, Eagle...

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