Rig Counts down -26% since Start of 2015

Rig Counts down -26% since Start of 2015

The Baker Hughes US Rig Count for land rigs remains in a downturn, dropping 7.1% this week to 1288 rigs compared to last week. The rig counts are down -25.76% from the start of 2015 when the count was at 1735 rigs.

energent-rig-count-insights

Texas has felt the biggest hit, decreasing their count by -56 rigs or -8.6% this week, dropping over half of the rigs for this week. The largest changes happened in the Permian Basin and the Barnett Shale, which lost a combined -44 rigs in Texas. Of the -44 lost, -6 dropped in the Barnett, 5 of which were vertical and -38 of the rigs came from the Permian, of that -31 were horizontal rigs.

The Williston basin rig count was also down this week as they released -9 rigs to bring the count to 128 rigs compared to last week’s 137 rigs, a change of -6.6%. -7 of the rigs dropped had depths of greater then 15K.

Pioneer Allocates $1.1 B to Permian

Pioneer Natural Resources (NYSE: PXD) announced this week that they will be dropping their rig counts to 16 rigs by the end of February 2015. They have also cut their budget by ~40% to $1.85 billion, with $1.1 billion of their budget allocated for drilling in the Permian Basin. Pioneer has also forecasted oil growth of ~20% for 2015. Pioneer provided the company’s budget sensitivity to commodity prices. The chart below shows the budget impact to changing commodity prices.

energent-group-pioneer-budget-2015

Apache to Operate 10-12 Rigs in Permian

Apache Corporation (NYSE: APA) has stated that it will be operating an estimated 27 rigs by the end of February and will be spending $2.1 – $2.3 billion for onshore North American activity. That decreases their total budget for 2015 to ~$3.8 billion, about 60% from their 2014 budget of $8.5 billion. They expect to operate an average of 17 rigs for 2015 in North America, with 10-12 of them running in the Permian Basin.

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