Topic: Permian Basin

Permian Traffic Accidents up 17% in 2018

A surge of activity has sprung up with the steady increase in price of WTI since the summer of 2017, most notably a 11.5% (+101 rigs) rise in rig count within the Permian Basin between June 2017 and April 2018. To support such activity, the Texas Department of Transportation, or TxDot, has allocated approximately $2 billion towards the Energy Sector in the State of Texas expanding across more than 1,400 projects from 2016-2019.Included in the $2 billion is approximately $180...

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In-Basin Sand Report: New Winkler Mines Change Frac Sand Landscape

New sand mines are changing frac sand pricing and logistics dynamics. The mines are concentrated in and around Winkler county in the heart of the Permian Basin.With 28% growth in Permian rigs, service companies and operators are reducing costs with new sand supply coming online in West Texas. Permian and SCOOP/STACK are leading the rig count growth (see sample page below). Drilling rigs targeting continue to dominate the drilling market.  Will the in-basin frac sand trend continue to other plays? Logistics Hold...

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West Texas inSANDity Continues in the Permian

Last week in Houston at the Frac Sand Supply & Logistics Conference, all signs pointed towards more sand per lateral foot, more mines in the Permian, and more trucks to deliver frac sand to the wellsite. Frac sand demand in the Delaware and Midland Basins is expected to increase. E&Ps have increased the proppant per lateral foot by 31% in the last year, with public E&Ps citing the transportation and logistics constraint as a concern, not frac sand supply. Regional replacement? Based on...

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Permian Sand Mines Add 35 Million Tons of Frac Sand By Summer 2018

During the first half of 2017, there were over 15 mines permitted or approved by Texas regulators. The sand rush of 2017 turned investor eyes towards the frac sand business.  Private capital supports many of the new companies entering the West Texas sand market. The Summer of Sand Frac sand companies aggressively leased and acquired positions in the heart of the Permian Basin in (and around) Winkler County Texas.The large public companies, like US Silica, Hi-Crush, and Fairmount Santrol announced mines coming online...

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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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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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Is History Repeating in the US Pressure Pumping Market?

Since 2012, the percantage of horizontal rigs running in the Permian Basin has steadily increased. The percent of horizontal rigs in the Permian grew from 14% in January 2013 to 27% in January 2015. Now, the Permian accounts for over 42% of the active horizontal rigs in the US land market.This year the Permian gained 100 horizontal rigs, a 46% increase in horizontally directed rigs. The year-over-year horizontal rig increase is a staggering 174% for the prolific basin. At this...

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