oilfield insights

Patterson-UTI Increases Average Rig Count, Moves Closer to Merger

On February 9, 2017, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) reported financial results for the three months and twelve months ended December 31, 2016.In the fourth quarter of 2016, Patterson’s average rig count in the United States increased by six to a total of 66 rigs. As a result of the decrease in the proportion of rigs on standby, total average rig operating costs per day during Q4’16 increased to $13,770, compared to the previous quarter of $13,180. Without the decrease...

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Sanchez Energy (NYSE: SN) Expects to Double Production in 2017

Sanchez Energy Corporation (NYSE: SN) had a blockbuster 2016, partnering with Blackstone the companies acquired Anadarko’s acreage in the Eagle Ford which is expected to close in the first quarter of 2017. This acquisition adds 132 DUCs, 3,400 drilling locations and 67,000 net Boe per day. The company optimized its well design in Catarina decreasing drilling and completion costs which are currently around $3 million per well.     In 2017, the company is expecting to spend $425 to $475 million and increasing...

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Marathon Unveils $2.2 Billion 2017 Capital Program

On February 15, 2017, Marathon Oil Corporation (NYSE: MRO) announced results from Q4 and FY 2016 and unveiled a 2017 capital program of $2.2 billion, with over 90 percent allocated to its high-return U.S. resource plays. Oklahoma Led Production in the Fourth Quarter On the operations side, Marathon’s production averaged 341,000 BOED in Q4 2016, with assets in the Oklahoma Resource Basins reporting a production increase of 60% over Q4 2015. E&P production costs for North America were down more than 30%...

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Anadarko Divests in 2016 to Accelerate Activity in the Delaware and DJ Basins

On January 31, 2017, Anadarko Petroleum Corporation (NYSE: APC) announced its Q4 earnings as well as its full-year results for 2016. In 2016 Anadarko improved cost structure and advanced efficiency initiatives, resulting in a 50% reduction in capital investments relative to 2015.Specific highlights of 2016 cited in the announcement included the following: Value-Accretive Monetizations In Q4 Anadarko signed agreements to divest assets in the Marcellus Shale ($1.24 billion) and the Eagle Ford Shale ($2.3 billion). Both transactions are expected to close by the...

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Newfield Exploration Leads Kingfisher County in 2016 with 10,000 Foot Laterals

Kingfisher county, located in the STACK, is among the most active counties in Oklahoma having 163 new completions since the start of 2016. Within the last year some of the most active operators have been Alta Mesa Holdings, Newfield Exploration and Chesapeake Energy. Alta Mesa has completed 46 wells and fracked 57 wells compared to Newfield who had 36 completions and fracking 44 wells. The county used a total of 770,000 tons of raw sand with 230 tons of resin...

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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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Devon Energy Will Utilize 15 to 20 rigs in 2017 with STACK and Delaware Focus

Devon Energy (NYSE: DVN) released its preliminary 2017 outlook in December expressed the possibility of getting to 15 to 20 rigs in their drilling program with a focus in the STACK and Delaware basins. Devon will also focus on reducing their drilled but uncompleted count in the Eagle Ford down to about 40 in the first half of the year. The company is forecasting double digit U.S. oil growth with about a third of production hedged in 2017.Source: Devon Energy...

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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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