Topic: Frac Crews

Did Keane and C&J Jump Start Pressure Pumping M&A?

C&J Energy Services and Keane Group announced a $1.8 billion all-stock merger on Monday morning. If completed, the deal will create the third largest US pressure pumper in terms of total hydraulic horsepower (HHP) capacity.Based on Energent's Lower 48 Horsepower and frac crew data, the combination of the two Houston-based pressure pumpers would result in roughly 2.3 million HHP capacity, ranking the newly combined entity behind Halliburton and Schlumberger in total capacity. BJ Services would drop to fourth at...

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Permian Jumps 15% in Horsepower Demand in Q4’19

Permian HHP demand is forecasted to trough in 1H’19, declining roughly 19% from the 2Q’18 peak to 5 million HHP before takeaway capacity comes online in 2H’19 and operators begin completing deferred activity. Active Permian crews are likely to decrease an additional 7% from Q4'18 levels, to match an 8% decline in HHP demand over the same period.Westwood estimates a 15% sequential increase in HHP demand from Q3’19 to Q4’19, with a 1% increase in active, or marketed, supply. Pressure...

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Pressure Pumpers Fall Prey to Efficiency

Completion efficiencies in the Marcellus/Utica formations of the US Northeast have changed the perception of the mature gas basin. The implementation of longer laterals and increased proppant loading intensity have lowered production costs and raised production. However, pressure pumpers in the Appalachia are expecting a slow-down in the back half of 2018 due to operators reaching production targets sooner than expected given increased operational efficiencies.Recent data shows a 9% decline in Marcellus fleet utilization. In June, utilization totaled approximately 93%...

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Mammoth Reports Growth in Pressure Pumping, Frac Sand Production, Directional Drilling

On May 3, 2017, Mammoth Energy Service, Inc. (NASDAQ: TUSK) hosted its quarterly earnings call to report results from Q1’17. Highlights included a dramatic increase in YOY pressure pumping activity, progress on two key frac sand production facility acquisitions, and growth in the company’s directional drilling fleets.Mammoth reported Q1 spending of about $31 million, most of which is tied to delivery of 75,000 HHP and associated equipment ordered in November 2016. Other factors includeAcquisition of three high-pressure fleets totaling...

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Patterson-UTI Increases Average Rig Count, Moves Closer to Merger

On February 9, 2017, Patterson-UTI Energy, Inc. (NASDAQ: PTEN) reported financial results for the three months and twelve months ended December 31, 2016.In the fourth quarter of 2016, Patterson’s average rig count in the United States increased by six to a total of 66 rigs. As a result of the decrease in the proportion of rigs on standby, total average rig operating costs per day during Q4’16 increased to $13,770, compared to the previous quarter of $13,180. Without the decrease...

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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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