Topic: Capex

Earnings Season Recap: E&Ps Prepare for 10%+ Cost Increases

Key Themes from Last Week's Earnings CallsE&P capital remains unchanged going into the second quarter Frac crews are sparse as many pressure pumpers continue to reactivate fleets Drillers see increased day rates to around $20K per day as operators continue increased drilling programs Frac sand prices are increasing as sand shortages continue Sand companies looking to increase supply with greenfield and brownfield expansionThe DetailsRange Resources (NYSE: RRC) drilled 3 laterals over 15,000’ and seven over 10,000’ in the...

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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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Oasis Petroleum Settles in For Lower for Longer, Keeps Rig Activity Lower 

Oasis Petroleum (NYSE: OAS) is a pure play operator in the Williston basin having about 485,000 net acres. The company expects production to be in the range of 48.5 to 49.5 Mboepd for 2016 which was increased since the previous guidance. Oasis has cut capital expenditures by just over half for the 2016 year down to $200 million for drilling and completion activity. The company expects to spend another $200 million on midstream services and other expenses. Year to date...

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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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EOG Resources Poised for Long Term Success

One of the largest independent exploration and production companies in the United States, EOG Resources (NYSE: EOG), is an operator that many look to in the current environment to model their well designs and cost saving techniques. The operator is seeing similar returns in parts of the Eagle Ford as they were in 2012 with oil being $35 dollars less and has more then doubled returns in the Permian at $60 compared to $95 in 2012.EOG Resources's  capital plan of $4.7 to...

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