Topic: Drilled Uncompleted Wells

The Sand Plateau, Cashless Profits, and More From Earnings Season

Key Trends:Pressure pumpers continue to see utilization rates rise for equipment while trying to keep up with the demand of hiring new crews. Operators hold plans steady during the quarter with some reducing CAPEX plans for the year due to lower than expected commodity prices. DUC count rises due to increased rig activity in the first half of the year as operators put a focus on drawing down inventory. Drillers continue to push for rig automation to reduce boots...

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DUCs Head North for Summer

Publicly traded E&Ps and service companies are entering a Q2 earnings season anticipating a slowdown across the unconventional plays. In Halliburton’s (NYSE: HAL) second quarter earnings call Dave Lesar said, ”rig count growth is showing signs of plateauing and customers are tapping the brakes.”  With oil prices under $50 per barrel and oil supply at record levels, expect a pullback in Permian, Eagle Ford, DJ-Niobrara, and Bakken drilling activity. The steady increase of horizontal drilling rigs and infrastructure needs in...

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Parsley Energy Grows Drilling Inventory 73% with Permian Acquisition

Parsley Energy (NYSE: PE) announced in its Q1’17 earnings call that it had closed the acquisition of about 71,000 acres and associated assets in the Permian Basin from Double Eagle Energy Permian LLC. The acquisition — which spans Dawson, Andrews, Martin, Howard, Midland, Glasscock, Upton, and Reagan Counties — increases Parsley’s total leasehold in the Permian to about 230,000 net acres and grows its net drilling inventory (in terms of locations in priority target zones) by 73 percent:Source: Parsley Energy...

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Continental Resources Waits for Sustained $45 bbl Oil Prices to Complete DUCs

Continental Resources (NYSE: CLR) is nearing cash flow neutrality and hopefully the end of the year will bring improved oil prices to lift them into the green. Continental has spent $630 million of the company’s $920 million budget in the first half of the year leaving only 32% of the budget for the second half of year so expect the company to have lower activity in the fourth quarter. Largest DUC Inventory in the Bakken Continental has had very minimal activity in...

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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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Noble Energy Increases Production with Less Capital

Noble Energy (NYSE: NBL) continued to show discipline in the first quarter of 2016 coming in under the low end of their CAPEX guidance of $400 to $500 million at $374 million for the quarter. Cost cutting efforts have helped the company grow production while spending less. Noble exceeded the company’s production guidance at 416,000 Boe/d for the first quarter.IP-Rates Increase by 30% in the DJ-Niobrara First quarter production in the DJ basin totaled 118,000 Boe/d which has been attributed to...

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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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