oilfield insights

Exco Will Bring 18 Wells Online with $103M Budget in 2016

Exco Resources (NYSE: XCO) is an active operator in the Haynesville, Eagle Ford and Marcellus plays. XCO has cut the budget once again after finishing 2015 $23 million under the estimated budget of $300 million, budgeting $103 million for 2016. During the first half of 2016 they expect to spend $70 million on drilling and completion activities, a 59% decrease from 2015 first half spend.  Improved Well Design in the Haynesville and Longer Laterals in East Texas East Texas Asset Team...

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A Look into Dunn County (ND): Permitting Drops to Zero and C&J Gains Market Share

Drilling deeper into activity in North Dakota we take a look at how Dunn county has tolerated the oil price slump. Operators like ConocoPhillips (NYSE: COP), Marathon (NYSE: MRO), HRC Operating, and ExxonMobil (NYSE: XOM) are still active. Since the start of the year, there have been few completions with 9 in January and only one in February.Permitting Tumbles to Zero Permit activity has slowed from a peak of 51 permits in October of 2014 to most recently 16 in the...

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Southwestern Slashes $1.4B from Budget

Southwestern Energy (NYSE: SWN) has taken an axe to their 2016 capital budget expecting to spend $350 to $400 million in 2016 down from $1,828 in 2015. The company is aiming to spend within cash flow during the year and has only 5% of production headed for 2016. Production will fall within the range of 815 to 835 Bcfe down ~15% from 2015 production. There are no plans for rigs to be running this year with zero wells to be...

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Haynesville Permits Drop -25% Y-o-Y

Activity in the Haynesville slowed as U.S. independent operators have moved to core plays with better returns at current prices. Operators like Comstock and EXCO have looked to the Haynesville to start refrac programs that show promise of higher returns. Read more about our Haynesvill Refrac  In-Depth Series.Permit activity shrinks -25% from one year ago In the Haynesville, new drilling permit activity has decreased -25% from January of 2015 to January of 2016 and -61% from 2014. So far in 2016,...

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Exploring the 885 DUCs in North Dakota

What do you mean DUCs? When our clients talk about DUCs, there is a discussion about what exactly constitutes a drilled but uncompleted well. Is it drilled and cased? What is the typical timeframe of a DUC? When is the well considered temporarily abandoned? If it finished drilling last week, should that be included in the DUC count? What was the typical DUC count prior to the downturn? These questions set the table for how the company views how DUCs impact...

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Devon Energy Actively Manages $976M in Debt and Continues Refrac Program

Devon Energy (NYSE: DVN) cut their budget by 75%, forecasting a 10% decline in oil production on a quarter to quarter basis from 2015 to 2016. Devon continues to manage their debt by putting assets up for sale and raising equity to cover the $976 million in debt they have in 2016. Committed to the Stack in 2016 In 2016 Devon will be running 4 rigs in the Stack with a focus in Meramec. The company is testing down spacing and staggering to...

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Permian Part 2 of 2: Top OFS Companies Lose Share of Midland Basin

As a follow-up from last weeks’ article on the Delaware Basin, this week we review the Midland basin to see how activity has declined and what counties, operators, and oilfield service companies are hanging in there. Operators in the Permian depend on the play for the best economics to produce in this low priced environment, moving away from other non-core areas.The Midland basin has seen a steeper drop in activity compared to the Delaware, showing a -65% decline in the number...

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EP Energy Defers Activity to Late 2016

EP Energy (NYSE: EPE) is an active operator in the Eagle Ford, Wolfcamp, Altamont and Haynesville plays. In 2016 daily production volumes are expected to fall between 91 to 97 MBoe/d from 109.7 MBoe/d in 2015 as the company continues to reduce activity. EPE is hoping to endure the downturn looking for improved pricing in the second half of the year where they are expected to pick up activity. Down to One Rig in the Eagle FordReduce rig count to one...

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