Topic: QEP Resources

Evolution of Permian Pad Drilling: Cube Development and the Pad Complex in Drilling Factories

The U.S. land rigs have been increasing along with the WTI price since mid-2016. In 2018, the US active land rig count was up 17% from the previous year. Energent's Rig Insights page suggests that currently there are 1,013 rigs operating as of last week of February. On a basin-by-basin level, the drilling activity in the Williston increased by 36% Y-o-Y, while the Eagle Ford and MidCon increased by 26% and 20%, respectively.Multi-well pad drilling is more mature in...

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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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Concho Resources Extends Permian Reach with $1.62B Acquisition

Concho Resources (NYSE: CXO) is an independent pure play operator focusing in on the Permian Basin. More specifically they operate in the Delaware Basin and Midland Basins, recently acquiring more acreage in the Midland area. CXO is expecting to spend $1.2 billion during the 2016 having already depleted $572 million or 52% during the first two quarters. The company has focused in on reducing operating cost looking to reduce the transportation costs associated with water disposal volumes by using pipelines...

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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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Wyoming Completion Activity Decreases ~70% from One Year Ago but Permitting Continues

The majority of activity in Wyoming has come from the Powder River and Pinedale Basins but most recently Pinedale has seen the majority of activity. Permit activity spiked in the beginning of 2015 peaking in May at 691. Permit activity has increased 19% from February 2015 to February 2016 and has dropped -16% in March from February which had 503 permits.61% of Activity in Wyoming Concentrated in Sublette County  In the past 6-months activity has been concentrated in the Pinedale basin...

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US Crude Inventories Rise, Land Rigs Decline

The Baker Hughes US Land Rig Count declined to 1,015 down -4.3% this week. WTI fluctuated this week ending around $46 per barrel. Here's a summary chart for the week:Summary of Shale Play Rig CountsPermian Basin -6.1% to 292 rigs compared to last week’s 311 rigs Eagle Ford -5.5% to 138 rigs compared to 146 the prior week Williston Basin -4.8% to 99 from last week’s 104 rigs Marcellus +9.5% to 69 from the previous week's 63 rigs Mississippian +4.8% to 44 rigs from last week's 42 rigs DJ-Niobrara 3.1%...

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