oilfield insights

SM Energy Completions Cost Down to $400 Per Lateral Foot

SM Energy (NYSE: SM) is one of the few operators who has a positive free cash flow during 2016. They have reduced spending by almost half since 2015 and continue to manage costs having spent just under half of their planned $685 to $690 million for the year. They have taken advantage of the cost savings in the low oil price environment and have stuck to the core areas that will generate returns for them. The chart below shows SM...

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Concho Resources Extends Permian Reach with $1.62B Acquisition

Concho Resources (NYSE: CXO) is an independent pure play operator focusing in on the Permian Basin. More specifically they operate in the Delaware Basin and Midland Basins, recently acquiring more acreage in the Midland area. CXO is expecting to spend $1.2 billion during the 2016 having already depleted $572 million or 52% during the first two quarters. The company has focused in on reducing operating cost looking to reduce the transportation costs associated with water disposal volumes by using pipelines...

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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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Diamondback’s Permian Pad Drilling Potential

Diamondback Energy Holds 1,500 Gross Locations Economic at $40/bbl Pure play Permian operator Diamondback Energy (NYSE: FANG) recently announced an increase in production guidance as well as capital spend for the 2016 year. The company increased production guidance from 34 to 38 Mboe/d to 38 to 40Mboe/d.  Well completion estimates were also increased to 70 to 75 gross horizontal completions, up 30% from previous plans. The rise in completions has added to capital expenditure for the year to $350 to $425...

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EOG Resources, Marathon, and Statoil Dominate Karnes County in Eagle Ford Shale

Karnes county, located in the Eagle Ford, just southeast of San Antonio is the most active county in the play. In this core acreage there are 8 rigs running operated by H&P, Nabors and Patterson-UTI. All of these rigs are drilling horizontal wells for Marathon, EOG Resources, Statoil and Encana. The map below shows the activity in the past month in the county, with the blue pines being permits and the green being completions.Permit Activity Remains Steady in 2016 Permit activity...

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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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