oilfield insights

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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Permian Part 1 of 2: Even $30 Oil Can’t Hold Back Delaware Basin Activity

Many operators turn their focus to the Permian as their “core” basin in 2015. The operators rely on the play to have the best economics to produce in this low priced environment, so we took a deeper dive into specific areas to show a more detailed view of activity. Part one of this article will go into the Delaware Basin and will be followed up with part 2 in the Midland basin next week. Stay ahead of your competitors by knowing DUCs by...

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Hess Expects $2.6B Budget for 2016

Hess Corporation Lowers Budget Guidance for 2016 Hess Corporation (NYSE: HES) ended 2015 with E&P capital and exploratory expenditures of just over $4 billion with $1.6 billion being spend on onshore U.S. activity. Onshore U.S. spending was down 36.4% from the previous year. The chart below shows the companies permit and completion activity in the Bakken over the last 2 years.Bakken Completions Increase Number of StagesHess averaged 8 rigs during 2015 starting the year with 12 and dropping that number to...

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Midstates Drilling Efficiencies Lead to Lower Rig Count and Well Costs in MidCon

Midstates Petroleum (NYSE: MPO) has focused operations in the Mississippian Lime during the 2015 year. They have focused on reducing well costs through drilling efficiencies and working with suppliers. Production is expected to remain flat into 2016 as the number of completions shrink. The chart below shows the number of permits and completions by month in Oklahoma for MPO.  Mississippian Lime: Reduced rig count due to realized drilling efficienciesWells generating IRR’s of greater then 35% at current well costs Reduced drilling cycle...

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Duc…Duc…Goose: Looking at North Dakota’s Uncompleted Wells and Oil Being Sold Close to $0

Earlier this week Bloomberg reported that low quality crude or sour crude is being sold for next to nothing due to lower pipeline capacity for lower quality products. The low quality crude makes up a small part of Bakken production in which some pipelines are no longer transporting. The producers of the low quality crude are being forced to use higher cost transportation methods like trucks or trains to get their products to the refineries that have the capability to...

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CLR enhanced completions

Contintental Resources Stays the Course in Bakken & SCOOP

Like many other Bakken E&P's, Continental Resources (NYSE: CLR) activity slowed in the second half of 2015.The company will continue to invest in Bakken and SCOOP, but do not expect Continental's production growth to continue as the company plans to release rigs in Bakken and SCOOP. The chart below shows drilling permits and completions for the Bakken, Continental's key asset. Source: Energent Group Bakken: Enhanced Completions Improve EURCurrent well costs are down 27% to $7 million per well Decrease in drilling daysReduction of...

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