Topic: Pad Drilling

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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Pioneer Energy Services Banks on Increased Activity in 2017

On February 17, 2017, Pioneer Energy Services (NYSE: PES) shared with investors its Q4’16 results and some details from its Q1’17 guidance. The company’s drilling rig utilization was 48% in Q4’16, up from 38% in Q3’16; for Q1’17, utilization is expected to increase to 70-73%.Forty-one percent of PES’ TTM revenue came from its US drilling services and 57% from its production services, encompassing well servicing, wireline, and coiled tubing:Source: Pioneer Energy Services Investor Presentation, February 2017 The company reported that some...

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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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Range Resources Shows Results for 5-well Pads

Range Resources (NYSE: RRC) focuses operations in the Southern Marcellus and Northern Louisiana plays having over 1 million net surface acres. In the third quarter the company closed the merger with Memorial Resources Development adding acreage in Northern Louisiana and expanding their reach. The Range team focused on their use of pad development in the Marcellus in the third quarter conference call showing efficiencies and cost reductions.Source: Range ResourcesProven Results with Pad Development There are about 230 pads in Ranges inventory...

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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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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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Clearing up the Media’s Account of Drilling Activity, US Rig Count -5

To no surprise to an experienced oilfield professional, rig count dropped a few rigs this week. The decline was all oil wells. Everyone is keeping a close eye on the WTI and Brent prices to understand the impact to their business and customers.This week Permian Basin is +2 compared to previous week and +95 compared to last year at this time. Eagle Ford is -3 compared to last week and -20 compared to last year. Click here to see the interactive weekly insights...

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